The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, has signed a trade finance agreement with Commercial Bank Kyrgyzstan (CBK). The US $4 Million facility, which is the second Line of Trade Finance Facility that ITFC is extending to CBK, is aimed at supporting import and pre-export financing needs of its private sector clients, including SMEs, whilst enhancing the Bank’s capacity and offering of Islamic finance instruments and products.
This financing is in line with the “Restore” initiative of IsDB Group’s “3R” strategy aimed at supporting member countries in their recovery from the adverse socio-economic impact of the Covid-19 pandemic.
The partnership, signed by Mr. Abdihamid Aweis Abu, ITFC’s General Manager, Trade Finance and Mr. Dastan Kurmanbaev, Deputy Chairman of the Board of CBK falls under the three-year, US $150 million Framework Agreement, signed between ITFC and the Kyrgyz Government in 2019 and will make way for further cooperation between the two parties to drive private sector development in the country.
Commenting on the agreement, Abdihamid said: “Commercial Bank Kyrgyzstan has become a trusted partner in ITFC’s quest to drive private sector development in member countries. The SMEs sector in the Kyrgyz Republic is still underdeveloped and faces a number of challenges including access to long-term financing. This latest financing agreement with CBK aims to bridge the financing gap to increase the competitiveness of SMEs, particularly now as they recover from the impacts of the pandemic, and enhance their integration into regional and global value chains through trade.”
The Kyrgyz Republic became an ITFC member country in 2019 and has since received trade finance and development support to grow its economy across key sectors including agriculture, private sector, and SMEs. The country is also key to ITFC’s objective to expand the reach of Islamic financing in the Commonwealth of Independent States (CIS) region.