WASHINGTON, D.C., Aug. 28 -- The International Finance Corporation (IFC) will provide US$5.6 million in financing to help establish Uzbek Leasing International A.O. (ULI), the first specialized leasing company in Uzbekistan. An investment agreement to this effect was signed in Tashkent today. This is IFC's first investment in the Uzbek financial sector and is expected to have a significant developmental impact by supporting small and medium scale enterprises, the growth of which are crucial for the country's transition to a global economy. "ULI will help alleviate the scarcity of long term finance in Uzbekistan by providing lease financing to emerging private companies and newly privatized enterprises to assist them in implementing investment plans and modernizing existing facilities," said Mr. André Hovaguimian, Director of IFC's Central Asia, Middle East, and North Africa Department. IFC's financing consists of a US$5 millon loan for its own account and a US$600,000 equity investment, representing a 15 perc
ent stake in ULI's share capital. Other key investors in ULI include Malayan Banking Berhad, Malaysia's largest financial establishment, which is also ULI's technical partner; the National Bank for Foreign Economic Activity, a leading universal bank in Uzbekistan; and the European Bank for Reconstruction and Development. ULI represents IFC's second investment in Uzbekistan. In fiscal year 1994, IFC invested US$1.2 million in the Amantaytau Goldfields. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
