Tashkent, Uzbekistan, November 10, 2006 — International Finance Corporation, the private sector arm of the World Bank Group, today signed an agreement to provide additional financing of $3 million and a technical assistance package to Joint-Stock Commercial Bank Hamkorbank, supporting the expansion of the bank’s lending to private small and medium size businesses.

The financing is expected to promote further private sector development in Uzbekistan. Small and medium enterprises are important sources of job and economic activity, and Hamkorbank is the largest privately owned bank in the country.

Jyrki Koskelo, IFC’s Director for Global Financial Markets, said, “We are delighted to continue our investment in Hamkorbank, which is one of the key private sector players in Uzbekistan’s financial sector and is committed to providing much needed financial services to a greater number of smaller businesses.”

Ikrom Ibragimov, Chairman of the Board of Hamkorbank, said, “We value very highly IFC’s long term, strategic partnership.  This is our second credit line with IFC in six years.  The first had an important role in developing the small and medium enterprise sector in our region, and we expect this new financing will help further develop not only this sector but the economy as a whole.”

Shahbaz Mavaddat, IFC’s Director for Southern Europe and Central Asia, said, “We are particularly pleased that our investment and technical assistance will help Hamkorbank further develop its business in one of the less privileged parts of the region and are hopeful this will contribute to Uzbekistan’s further development.”

Hamkorbank, originally founded as a regional bank in the Fergana Valley, a densely populated region with a relatively high level of poverty, is transforming into a nationwide financial institution, offering small and medium enterprise loans, as well as micro loans, consumer loans, and leasing products.  

About IFC

The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit www.ifc.org

About Hamkorbank

Joint-Stock Commercial Bank Hamkorbank is a licensed commercial bank headquartered in Andijan, a northeastern town in Uzbekistan.  The bank, established in 1991, has a nationwide network of 24 full-service branches and 41 mini-branches that function as teller and cashier for consumer transactions (such as utilities payments, money transfers, and deposits in remote areas).  Hamkorbank provides a full range of domestic and international services to small and medium enterprises and individual entrepreneurs including lending, international and national payment services and current accounts management.