Uzbekistan signs agreements worth $700 mln with International Islamic Trade Finance Corporation

TASHKENT. March 6 (Interfax) - Uzbekistan and the Islamic Development Bank's International Islamic Trade Finance Corporation (ITFC) have signed agreements to develop trade and business and enhance food security, the Uzbek Investment, Industry and Trade Ministry's press office said.

"Uzbekistan's Investment, Industry and Trade Ministry and the International Islamic Trade and Finance Corporation signed a framework cooperation agreement worth $600 million for 2024-2026," it said.

The agreement envisages financing for state-owned enterprises, as well as local banks and other financial institutions to meet the trade and business development needs of private sector clients.

The ministry and ITFC also signed a Murabaha deal, as practiced by banks in Islamic countries to conduct interest-free transactions, within the framework of the project Food Security and Agriculture Support project, as well as an agency agreement worth $100 million. These funds will be allocated to support the development of the country's agricultural sector.

The purpose of the ITFC, established in 2008, is to expand trade between Organization of Islamic Cooperation member states.

Uzbekistan's partnership with ITFC began in 2018. Uzbekistan and the ITFC signed a framework agreement worth $500 million in 2019.