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Description |
The transaction is an equity investment in JSC Bank Ipak Yuli. To strengthen the effectiveness of the intervention, ADB will also be providing the Bank with technical assistance in such areas as corporate governance and internal controls, risk management, credit risk management, micro-credit and SME financing, and environmental and social safeguards (including tracking of gender benefits and the implementation of a gender action plan). |
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Objectives and Scope |
Through its equity investment, ADB will provide systemic support to the banking sector in Uzbekistan at a critical point in its development, strengthening financial intermediation and helping to promote confidence in the banking system. The proposed equity investment in Ipak Yuli will also lend key support to the sector by promoting the adoption of strengthened operational policies and procedures based on international best practice standards, particularly in the areas corporate governance, internal controls, risk management, credit risk management, environmental and social safeguards, and anti-money laundering/and anti-corruption. The equity investment will also contribute to private sector development by helping to mobilize liquidity and channel it toward the most productive investments through the extension of credit. |
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Linkage to Country/Regional Strategy |
The 2006-2010 ADB Country Strategy and Partnership (CSP) for Uzbekistan identifies among its strategic priorities catalyzing private domestic and foreign investment through ADB's private sector operations. The CSP mentions that there are a number of potential transactions from the private sector operations side in the financial and infrastructure sectors. The proposed equity investment is well within the range of transactions envisioned by the CSP and the Country Operations Business Plan 2011-2013, which has again highlighted private sector development and financial sector development as key objectives. |
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