ICD, Uzbek banks sign financing deals

Khaled Al-Aboodi, chief executive officer and general manager of the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, yesterday signed additional Line of Financing (LOF) agreements with two banks of Uzbekistan - Ipak Yuli Bank for a $5 million facility and Uzbek Industrial and Construction Bank for $6 million - during the 37th IDB Group Annual Meeting in Sudan. Since 2006, the ICD has signed financing agreements with seven local financial institutions for a total of $72 million LOF facility approved by the ICD board of directors for the development of small and medium enterprises (SMEs) in Uzbekistan. This demonstrates ICD's firm commitment to develop the private sector in its member countries. Al-Aboodi indicated that the success of implementing the LOF to Uzbek banks and the impact it had on developing the SME, has encouraged the ICD to extend its financial support. ICD was established by the decision of the IDB's board of governors during their 24th annual meeting held in Jeddah in November 1999. ICD is a multilateral financial institution, member of the Islamic Development Bank (IDB) Group. Its shareholders are the Islamic Development Bank (IDB), 47 member countries of ICD, and 5 public financial institutions from member countries. The mandate of ICD is to support economic development of its member countries through provision of finance to private sector projects in accordance with principles of Shariah through promoting private sector development. ICD also provides advice to governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. Projects financed by ICD are selected on the basis of their contribution to economic development considering factors such as creation of employment opportunities and contribution to exports. ICD also attracts co-financiers for its projects and provides advice to governments and private sector groups on policies to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhance the role of market economy. ICD operates to complement the activities of IDB in member countries and also that of national financial institutions.