Economic cooperation of the Republic of Uzbekistan with world financial organizations

In the framework of the reforms carried out in the Republic of Uzbekistan, considerable attention is paid to projects based on European technologies, allowing to organize the production of products with high added value in all promising areas of the economy. January 14. 2019 in Berlin, in the framework of the Uzbek-German Business Forum, held on the eve of the state visit of the President of the Republic of Uzbekistan Sh.M. Mirziyoyev to the Federal Republic of Germany, Weszbank and the German KfW IPEX – Bank signed a basic loan agreement in the amount of 100 million euros.

The signed agreement provides for the start of a new cooperation with KfW IPEX – Bank in providing a long-term credit line to Recognition Bank for financing large investment projects with a minimum amount of 5 million euros and with a term of up to 10 years. The main advantage of this agreement, compared to other attracted credit lines of European banks, is the financing of projects in all sectors of the economy involving the import of high-tech

European equipment and services from Germany and other European Union countries under insurance coverage of export credit agencies (ECA) Euler Hermes, SACE and SERV. The cooperation of Uznatzbank and KfW IPEX – Bank will give a new impetus to the development of trade and economic relations between Uzbekistan and Germany, as well as serve to intensify bilateral relations in other promising areas.

KfW IPEX-Bank is a banking unit of the KfW Group and was formed as a member of the group in 2008. The main mission of KfW IPEX-Bank is to support the economy and activities of companies in Germany and Europe in the areas of project and export financing. The bank owns assets in the amount of 30.1 billion US dollars. KfW IPEX-Bank, being a partner in financing many large companies around the world, has a branch in London and representative offices in Abu Dhabi, Istanbul, Johannesburg, Mexico City, Moscow, Mumbai, New York, Sao Paulo, Singapore.

Cooperation with international financial organizations and donor countries occupies one of the central places in the investment policy of Uzbekistan. Today, MFIs are actively involved in the implementation of industrial modernization programs, infrastructure and transport and communications construction, and the improvement of social infrastructure. MFIs also play an important role in the achievement by Uzbekistan of the targets and the Millennium Development Goals through the support of the main activities envisaged by the strategy to improve the welfare of the population of the Republic of Uzbekistan. Over the years of cooperation with the World Bank, the Asian and Islamic Development Banks, the Japan International Cooperation Agency, the German Development Bank KfW, the Eximbank of China and Korea, the Arab Funds of the Coordination Group, the European Union Commission and other IFIs have accumulated considerable experience in joint activities in implementing investment projects , a mechanism has been established for the consistent implementation of projects on the basis of medium-term cooperation programs that are being formed. Thanks to cooperation with MFIs on a systematic basis, the volumes of their financial investments in the economy of the republic increase annually.

At the initiative of the President of the Republic of Uzbekistan, 2019 has been declared the “Year of Active Investments and Social Development”. As it was noted by the Head of State: “Investment is the driver of the economy, figuratively speaking, its heart.” Based on the most important development priorities of the country for 2019, the National Bank for Foreign Economic Activity of the Republic of Uzbekistan carries out comprehensive measures to establish close cooperation with the leading banks of Europe. On the eve of the state visit of the President of the Republic of Uzbekistan to the Federal Republic of Germany, on January 14, 2019, within the framework of the German-Uzbek business forum held in Berlin, Wescbank signed a basic loan agreement with Raiffeisenbank Germany totaling 300 million euros. The agreement provides for the financing of exports of high-tech equipment and technologies from the European Union, under the insurance coverage of export credit agencies (ECA). Co-financing of large investment projects in Uzbekistan is also expected through the provision of a credit line on a long-term basis for up to 7 years.

The agreement with Raiffeisenbank Germany will contribute to the implementation of the objectives set out in the “Strategy for action in the five priority areas of development of the Republic of Uzbekistan in 2017–2021”, to stimulate the growth of the export potential of our republic, to actively attract foreign investment, and to increase the competitiveness of local producers in the domestic and foreign markets , as well as the creation and improvement of the investment and business environment for broad business development.

It should be noted that Raiffeisenbank Germany is a long-time partner of National Bank of Uzbekistan, in particular, in the field of treasury and documentary operations. The cooperation of two banks dates back to 2001. The history of the banking and financial group Raiffeisen dates back to the mid-19th century: the first Raiffeisen Institute opened in 1886. Raiffeisen Bank International AG (RBI) is the main banking unit of the group and occupies a leading position in the region of Central and Eastern Europe with assets of more than $ 170 billion. In total, RBI has more than 2,200 divisions, subsidiaries are present in 14 countries in the region. About 47 thousand bank employees serve about 16 million clients.

Taking into account the need to ensure the target indicators defined by the programs for the development of industry, infrastructure and transport and communications construction for 2019-2022, as well as the strategy for improving the welfare of the population of the Republic of Uzbekistan for 20162019, the implementation in conjunction with the following priorities for MFIs and donor countries:

• -    improving the competitiveness of the economy of Uzbekistan by creating new high-techindustries, accelerating the processes of modernization, technical and technological renewal of existing facilities, as well as a significant improvement in the investment climate and business environment;

• -    ensuring the priority development of small business and services, primarily in rural areas, increasing employment and income, improving the quality of life of the population;

• -    increasing energy efficiency of production, widespread introduction of energy-saving technologies and the development of energy, based on renewable energy sources;

• -    the widespread introduction and accelerated development of information and communication technologies and the enhancement of their role in the economy;

• -    the continuation of reforms in the areas of health and education;

• -    activation of activities in the field of environmental protection and ecology, including in the Aral Sea zone and other regions with a complex

environmental situation, development and implementation of green economy technologies.