Uzbek, Swiss banks sign loan agreement for textile project

Uzbek bank Asaka has signed in Zurich a syndicated loan agreement with the Swiss branch of Germany’s Commerzbank AG and the Swiss bank Zürcher Kantonalbank. The loan amount is €37.4 million with a maturity of 10 years under the insurance coverage of the Swiss export credit agency SERV for financing the textile project Ko-kchatekstil LLC.

This is reportedly the first joint project for Swiss banks and the Asaka Bank, according to Uzbek media reports.The project will modernise current spinning production and better organise the release of dyed cotton fabric. Swiss company Rieter Machine Works Ltd will supply the equipment.

This project will create more than 1,000 jobs and will initiate sewing of finished products later. The annual capacity of the enterprise will be 20,000 tonnes of cotton yarn and 4.8 million linear metres of printed fabric. Finished products manufactured at this enterprise will be exported.