Uzbekistan’s second largest bank, Uzpromstroybank, also known as SQB (Sanoatqurilishbank), has signed loan agreements for a total of 160.7 million euros with major German banks to finance projects aimed at increasing production capacity of Uzbek enterprises and introducing modern technologies.

The documents were signed within the framework of the German-Uzbek Business Council held in Germany, Uzpromstroybank said in a statement.

A cooperation agreement with Commerzbank AG for the implementation of projects worth 13.9 million euros aims to support industrial enterprises in Uzbekistan by financing projects to increase production capacity, introduce modern technologies into the production process, expand the range of high-quality products and create additional jobs.

An individual loan agreement of 66.8 million euros was signed with Landesbank Baden-Wurttemberg, which provides for financing to increase the production capacity of one of the largest textile enterprises in Uzbekistan.

Another agreement for a further 80 million euros on trade financing was also signed with Landesbank Baden-Wurttemberg, aimed at increasing the volume of financial resources of Uzpromstroybank for business development in Uzbekistan, including supporting local exporters and importers.

Rated ‘BB-‘ by Fitch Ratings and S&P, Uzpromstroybank is among several state-owned banks due to undergo privatisation under the government programme in 2022.