China Eximbank provides RMB 2 billion loan to National Bank for Foreign Economic Activity of the Republic of Uzbekistan for on-lending to SMEs

📋 Staff Comments

1. The loan commitment date (August 2023) is identified on pg. 51 of NBU's Consolidated Financial Statements for the Year that Ended on December 31, 2023 (https://nbu.uz/upload/iblock/f69/q8e8n86imxlp5mp3us6s4nbbnxksap1w/nbu_ifrs_ye2023_eng.pdf). It appears that the parties signed a loan framework agreement on May 19, 2023.
2. As of August 2024, the NBU website stated that its USD-denominated China Eximbank borrowings were based on an interest rate of 6-month LIBOR plus a 3% margin and its RMB-denominated CDB borrowings were based on a fixed interest rate of 4.8% (https://nbu.uz/en/small-business/foreign-credit-lines/). For the time being, AidData assumes that the interest rate of the (August 2023) RMB-denominated loan from China Eximbank to NBU was equal to 4.8%. This issue warrants further investigation.

📚 Sources & References

• NBU signs an agreement with the Eximbank of China in the amount of 2 billion yuan
• JSC 'National Bank for Foreign Economic Activity of the Republic of Uzbekistan' Consolidated Financial Statements For the year ended 31 December 2023 and Independent Auditor's Report
• 进出口银行与乌兹别克斯坦外经银行签署首笔人民币信贷额度框架协议
• NBU signs an agreement with the Eximbank of China in the amount of 2 billion yuan Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.