On September 19, the Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”) signed a memorandum of understanding with Uzbekistan’s largest bank, the National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU), to support Korean firms participating in Uzbekistan’s projects.

The MOU, concluded at a time when the role of government-run banks in the context of the global financial crisis is growing in importance, is aimed at providing project-related financing and information to Korean companies making inroads in Uzbekistan.

Its main features include cooperation in project financing and trade financing for Korean firms operating in Uzbekistan, as well as identification of potential Korean investors in NBU-invested projects.

In particular, Korea Eximbank has agreed to extend a USD 100 million interbank credit line* to NBU for this purpose.

* Credit line providing financing to importers via local banks to assist Korean exports

Prior to signing the MOU with NBU, Korea Eximbank had also signed MOUs for information exchange and identification of co-financing projects with the State Joint-Stock Commercial Bank Asaka (31 August), the Uzbek Joint-Stock Industrial Construction Bank (Uzpromstroy, 18 September), and the Fund for Reconstruction and Development of the Republic of Uzbekistan (UFRD, 13 September).

Chairman Yong-hwan Kim of Korea Eximbank remarked after signing the MOU, “These MOUs have enabled us to establish an all-encompassing financial network to support Korean firms wanting to do business in Uzbekistan and Central Asia.”

Korea Eximbank has been providing USD 2.2 billion in export financing for Korean companies involved in natural gas development projects and petrochemical plant constructions in Uzbekistan, as well as for SMEs exporting to the country.

In particular, Korea Eximbank agreed in March to finance USD 1 billion for Uzbekistan’s Surgil Gas Field Project, in which KEPCO is participating as a sponsor and GS E&C will be exporting equipment for processing natural gas.

NBU, UFRD and Uzpromstroy Bank are also financing a total of USD 500 million for this project.