OREANDA-NEWS. December 18, 2009. In the framework of the Year of Rural Development and Improvement state program President of Uzbekistan Islam Karimov signed a resolution on 30 March 2009 on creation of the Qishloq Qurilish Bank on the basis of one of the country's banks Galla-bank.

The purpose of the creation of the bank was to improve the living conditions of the rural population and construction works in the villages, speeding up the development of the industrial and social infrastructure in the regions and wide introduction of the long-term crediting of the housing construction in the country.

One of the priorities of the bank's activity is to attract credit lines of international financial institutions in order to continue the development of the industrial and social infrastructure in Uzbekistan. As a result of these efforts the Bank accepted on 10 August, 2009 the agreement of recrediting part of \\$2 million credit, given by the International Development Association. The document was signed by the government of the Republic of Uzbekistan, The Agency of reconstruction of the agricultural enterprises and Qishloq Qurilish Bank within the framework of the project "The support of agriculture enterprises. Phase 2".

Also aiming the deeper cooperation with the European international financial institutions on 27 August, 2009 Qishloq Qurilish Bank and Landesbank Berlin (Germany) signed 10 million euro credit agreement.

One of the latest achievements of Qishloq Qurilish bank in attracting international credit lines and thus expanding the resource base of the bank was signing on November 23, 2009 the agreement with the German.

A credit line offered by Commerzbank is intended to partially fund the contract for the purchase and delivery of equipment and providing related services to exporters from the Federal Republic of Germany or other European importers in Uzbekistan. The minimum percentage of the borrower of the contract price shall be not less than 15% and 85% financed by a loan.

Commerzbank works together with export-credit agency of Germany which purpose is assistance to exporters of the country in production sale, and also in granting to the banks which are carrying out financing export transactions, an insurance or guarantee covering of risks. Kommertsbank has extensive experience of financing long-term projects. Mentioned export-credit agency, having studied activity of Qishloq Qurilish bank, has established a limit on the given credit line at a rate of 10 million euro. Thus the sum allocated for one credit for financing an export, ECA has defined not less 500 000 euro. The credit rate is established from calculating 6-month's rate Libor/Euribor plus commissions of Qishloq Qurilish bank, Commerzbank and insurance.

Note that Commerzbank co-operates with Export credit agencies of Germany (ECA), whose goal is to assist German exporters as well as to provide insurance or guarantee coverage of risks for the banks engaged in financing export transactions. Having studied the activities of Qishloq Qurilish Bank ECA has set a limit on the provided line of credit amounting to 10 million euros. The annual rate is set at the level 6-month Libor/Euribor rate plus commission Qishloq Qurilish Bank, Commerzbank and insurance premiums.

Besides cooperation with German partners Qishloq Qurilish Bank extends cooperation with Asian international finance institutions, Islamic corporation for the development of the private sector, the State China Development bank and others.