Magazine article Global Finance

Asaka Bank: Your Key for Success in Uzbekistan

Magazine article Global Finance

Asaka Bank: Your Key for Success in Uzbekistan

Article excerpt

To support the development of key industries, the Government of Uzbekistan-understanding the importance of such growth to the national economy-created specialized financial institutions. Development of the motor industry fell to the young and ambitious Bank Asaka, which began its role as a Specialized State Joint-Stock Commercial Bank at the end of 1995, at which point it had authorized capital of US$150 million, 799 employees and 15 branches. From the start, Bank Asaka took a lead position in the banking market of the country. By 2003, capital had grown by 10.7%, assets by 59.5%, credit portfolio by 62.8% and client base (including investors) by 34.6%. By 2004, the bank had 26 branches and 45 "mini-banks," with a total staff of 1,966 employees,

At an early stage, the bank participated in the financing of delivery of accessories from Korea for the production of cars by the joint venture UzDaewooAuto, as well as for specialized engineering and the manufacturing of buses for SamCochAuto. In addition, the bank financed seven new joint ventures for manufacturing spare parts from local raw materials, resulting quickly in the reduction of raw materials dependence for two manufacturers.

By following its strategic plan, since 2001 the bank has been a dynamically developing institution, diversifying its activities by reducing its concentration in the auto industry and participating in investment projects totaling $200 million, including 20 investment projects in the textile industry, eight in pharmaceuticals, six in information technology and two in transportation and telecommunications. For these projects the credit lines of more than 160 foreign correspondent banks were used, with insurance coverage by export credit agencies.

This adds to the bank's growing reputation for reliability and trust within the world banking community. In addition, the bank has successfully utilized four credit lines, totaling $60 million, from such international financial institutions as the European Bank for Reconstruction and Development (EBPJD), the Asian Development Bank (ADB) and International Financial Corporation (IFC). …

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