On May 2, on the eve of the high-level visit of the President of the Republic of Uzbekistan Shavkat Mirziyoyev to the Federal Republic of Germany, the Uzbekistan – Germany Business Forum was held with the participation of leading German companies and financial institutions of the two countries.

At the event, a solid package of agreements was signed between the business circles of Uzbekistan and Germany. Views were exchanged on promising areas of interaction and the implementation of new growth points.

According to the NBU, among the significant agreements concluded at the Business Forum, there was also a Cooperation Agreement on attracting a credit line for €100 million, signed between the JSC National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) and Landesbank Baden-Württemberg (LBBW).

The agreement allows the NBU, on exclusive terms, to attract long-term and concessional financing for investment projects, including in the textile industry and alternative energy, under the cover of the Euler Hermes export credit agency.

In pursuance of the Decree of the President of the Republic of Uzbekistan of 10.01.2023 No. DP-2, agreements were reached with the German side on financing the textile industry projects with a project cost of €143 million through the credit line of LBBW, the implementation of which will contribute to the creation of more than 2000 new jobs and increase the export potential of this sphere.

The implementation of projects in the textile industry in accordance with the above Decree of the President of the Republic of Uzbekistan will ensure the organization of high-tech production of textile products by creating a chain of a full cycle from deep processing of cotton fiber to the manufacture of finished textile products with high added value by 2.1 times and an export indicator of 2.6 times, as well as expanding the production capacity of existing enterprises.

It should be noted that the textile industry of Uzbekistan is developing at a high pace, which is largely facilitated by the presence of an extensive raw material base and the ever-increasing demand for manufactured products, as well as a favorable investment policy in the country stimulates the inflow of foreign investment.

UzA