National Bank of Uzbekistan: a key institution in deepening investment cooperation with China

The National Bank of Uzbekistan (NBU), founded in 1991, has a leading position in the banking system of the Republic of Uzbekistan and is an active participant in the country's ongoing reforms.

Since gaining independence, the NBU has served as a supporting institution of the government in transforming the national economy, creating a favorable business and investment climate through financing strategically significant investment projects. These tasks have always been a priority for the NBU.

The NBU's share in the banking sector of Uzbekistan in terms of assets is 21.5 percent ($10.68 billion); 20.6 percent ($1.46 billion) in capital; 23 percent ($7.96 billion) in loans; and 17.6 percent ($3.4 billion) in deposits.

To improve the people's livelihoods and develop infrastructure, the NBU allocated $1.5 billion of funding for 59 strategic investment projects in the fields of transport, communications, textiles, services, metallurgy and mining in 2022.

As the largest financial development institution of Uzbekistan, the NBU contributes greatly to the development and deepening of investment and trade partnerships with foreign countries, including China, with which Uzbekistan has 30 years of diplomatic relations and a more than 10-year strategic partnership.

Productive and friendly partnerships have been established with some of the largest Chinese financial institutions, such as China Development Bank (CDB), the Eximbank of China, the SINOSURE China Export & Credit Insurance Corporation, the Silk Road Fund (SRF), the Agricultural Bank of China, and Shanghai Pudong Development Bank.

To date, the portfolio of Chinese financial institutions' credit lines attracted by the NBU totals $3.4 billion, of which the largest share has been made by CDB.

A strategic partnership has been established with CDB both at the bilateral level and at the site of the SCO Interbank Consortium based on "Shanghai Spirit" principles. Under the SCO cooperation, the NBU has raised 13 credit lines of more than $1.7 billion, and financed large investment and infrastructure projects with CDB in the fields of transport, electrical engineering, telecommunications, agriculture, textiles, construction, and services, as well as more than 700 SME projects.

By cooperating with the Eximbank of China, 27 strategic projects worth more than $1.4 billion have been financed in agriculture and water management, education, medicine, information technology and communications, construction, transport and energy spheres. Moreover, more than 200 SMEs have received financial support from the Eximbank of China to establish trade relations with Chinese manufacturers.

A new model of cooperation has been established with CDB, the Eximbank of China, and the SRF in project financing by expanding the settlements share in yuan, amounting to more than 2.7 billion yuan ($382.01 million).

The financing of the largest tourist complex in Samarkand, which hosted the 2022 the Samarkand SCO Summit, can be given as an example. The construction of this "Pearl of the East" boosted tourism numbers by 2 million.

The NBU is planning to continue its cooperation with Chinese banks and financial institutions in project and trade financing, by attracting new credit lines of CDB and the Eximbank of China of more than 3.2 billion yuan, expanding joint activities in treasury operations by using new financial derivatives, and exploring ways of entering into the foreign exchange market and the capital market of China.