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IFC Helps Ipak Yuli Bank Manage Risk, Expand Local-Currency Lending in Uzbekistan
Tashkent, Uzbekistan, May 18, 2020—IFC, a member of the World Bank Group, and Ipak Yuli Bank have signed an agreement that allows the bank to better manage its currency risk and provide local currency finance for small and medium enterprises, which are key drivers of economic growth in Uzbekistan.
Under the agreement, IFC and Ipak Yuli Bank will execute cross-currency swap transactions under an International Swaps and Derivatives Association (ISDA) Master Agreement, a standard document that governs over-the-counter derivative transactions. It allows the bank to hedge its foreign currency-denominated funding and better manage its assets and liabilities mismatches. IFC is the only financial institution that provides local banks in Uzbekistan with this kind of risk-management tool.
“This is the first such agreement that Ipak Yuli Bank has signed that is aimed at increasing funding through derivative financial instruments. This partnership with IFC will help expand our lending to customers in local currency, while effectively mitigating financial risks and managing our currency-risk exposure,” said Saidabror Savdakhmedov, Chairman of the Management Board of Ipak Yuli Bank.
Cassandra Colbert, IFC Regional Manager for Central Asia, said, “This agreement shows that IFC is standing by its partner banks and is ready to support them in all circumstances. Ipak Yuli Bank can better manage its currency risk and continue lending in local currency to firms that need funding. This is critically important at a time when businesses are suffering currency vulnerabilities due to the global impact of the COVID-19 crises.”
IFC has partnered with Ipak Yuli Bank, one of the largest private banks in Uzbekistan, since 2018, and has provided the bank with a financing of $15 million denominated in Uzbek Soum.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About Ipak Yuli Bank
Founded in 1990, Ipak Yuli Joint Stock Innovation Commercial Bank is the first private bank in Uzbekistan. The provides a wide range of banking services to retail and corporate customers through a well-established 16-branch network and 36 express centers across eight regions of Uzbekistan. Bank Ipak Yuli constantly strives for the continuous growth of its business by expanding its customer base, the regional presence of the bank, increasing the amount and types of services to meet the needs of each client.