OREANDA-NEWS. June 22, 2010. One of necessary conditions for development of any economy is high investment activity. As the President of Uzbekistan Islam Karimov noted in his speech at the session of the Cabinet of Ministers devoted to results of socioeconomic development of the country in 2009 and the major priorities of the economic program for 2010, "…there is no modernization without investments, there is no renovation! Here again we mean not only acceleration of realization by the enterprises of investment projects, but also how actively in realization of investment processes are directly interested and participate commercial banks with their credit resources".

One of the largest banks of Uzbekistan – Agrobank open joint-stock commercial bank – throughout a number of years takes active part in investment processes of the country.

- Inomjon Djurabaev, you head the Department of financing and monitoring of investment activity of Agrobank. Tell us, please, about the dynamics of the bank's investment activity.

- First of all, it would be desirable to notice that investment activity of Agrobank is directed on modernization, technical and technological re-equipment of the enterprises of real sector of economy.

As a result of the work done by bank as 1 January 2010 the share of long-term investment credits for over three years has reached 62% from the total sum of the bank's credit portfolio. The volume of the given out investment credits in 2010 made up 60 billion soums. Considerable part (78%) of the bank's investment portfolio is generated at the expense of internal sources.

Agrobank actively participates in financing of the largest investment projects, including capitally-regenerative repair of the Karshi cascade of pump stations, modernization and reconstruction of cotton cleaning factories, and the enterprises entering into association Uzdonmahsulot. For these purposes Agrobank this year allocated 14.2 billion soums.

Besides, for development of purpose funds directed on replenishment of the authorized capital of the bank, preliminary selection of 13 potential projects worth 45 billion soums has been made. Four investment projects for 33 billion soums, and nine enterprises of Uzpahtasanoat worth 12 billion soums are among them.

- How are partner relations with international financial institutions in the sphere of attraction of foreign investments developing?

- Undoubtedly, international economic cooperation plays important role in activation of investment activity of commercial banks. In particular, for today, Agrobank involved credit lines for the sum over USD80 million of such international financial institutions (IFIs) as the European Bank for Reconstruction and Development, World Bank for Reconstruction and Development, Asian Development Bank, International Development Association, Chinese Eximbank, German HypoVereinsbank.

Among the credit lines given to Agrobank in 2010 it is necessary to note the credit agreement with the Asian Development Bank worth USD20 million and a line of Islamic Corporation for Private Sector Development for USD5 million.

The work carried out by Agrobank in the field of increase of investment activity promotes the organization of the new highly technological manufacture, allowing to produce competitive production both on internal and external markets, escalating of export potential and growth of employment of the population.

Purposeful measures on improvement of economically insolvent enterprises transferred to balance of the bank are taken within the realization of investment activity of Agrobank. Chief of Department for coordination and monitoring of investment activity of Agrobank Sardorbek Istamov told about the work done in this direction.

- With a view of further increase of financial stability of the enterprises of real sector of economy, Agrobank actively works with investment projects on financial improvement of the enterprises-bankrupts. As a result of the done work 10 economically insolvent enterprises with a total cost over 28 billion soums have been accepted on balance of the bank.

Besides, Agrobank decided on restructuring of creditor debts of three export-oriented enterprises for a period of 12 months worth 6 billion soums.

Also, according to the Program of updating of manufacture, increase of economic stability and creation of additional workplaces within last year the bank financed 47 small business projects for 6.7 billion soums. It would be noted that over 1,535 new workplaces have been created due to the done work.

In order to avoid time lack of circulating assets of industrial enterprises Agrobank issues credits from own funds. In particular, the bank allocated USD294,000 for acquisition of cotton fibre from the foreign trade company.

Besides, the bank financed reconstruction of cotton processing factories which are a part of Uzpahtasanoat association worth 54 billion soums.

Thus, Agrobank carries out purposeful work on modernization, technical and technological re-equipment of manufacture of economically insolvent enterprises of real sector of economy. The bank is not planning to stop on the achievements and will continue fruitful activity in this direction.

With a view of restoration of manufacture and management of assets of the new enterprises created on the basis of property of bankrupt enterprises, Agrobank founded operating company Agroinvest Recovery LLC. Chairman of Board of Agroinvest Recovery Sherzod Rabimkulov told us about this company's results of activity.

- Please, tell our readers about specificity of your company's work.

- Agroinvest Recovery is a young company which entered the domestic market in the beginning of 2010. Agroinvest Recovery actively participates in the investment activity of Agrobank as one of the company's priorities is investment into former enterprises bankrupts and adjustment of their manufacture.

For effective work of the company we have formed a staff of 12 highly skilled experts. Currently there are 10 enterprises worth a total of over 28 billion soums in confidential management of Agroinvest Recovery.

- How successfully the process of improvement of enterprises passes?

- Thanks to the complex approach to this issue, manufacture process has been launched in 5 of 10 created enterprises. In particular for the first quarter of current year these enterprises manufactured products for home market for 281 million soums and for export USD1.31 million. These are basically textile and dairy production, spare and completing parts for agricultural machinery, etc.

It would be desirable to add that terms of restoration of manufacture depend on the condition of the enterprise. For example, the enterprises which have gone bankrupt because of shortage of circulating assets, and because of bad management are restored more likely than those requiring major repairs of available infrastructure.

- Could you, please, share with the plans for the near future?

- On the basis of developed business plans, Agrobank is planning to invest 15.5 billion soums in these enterprises. These money resources basically will be directed on major repairs of premises, and on purchase of modern equipment.

684 workplaces are expected to be created as a result, from which for today 388 already function. All these measures are undertaken to establish production in newly created enterprises which will be competitive both on local and foreign markets.

Thus, new enterprises are created on the basis of Agrobank investments, and already existing ones expand, new kinds of production are manufactured, employment of the population raises. Investment activity of Agrobank has not only economic, but also social value, promoting development of market relations in economy, creating a steady financial basis for economic activities of its subjects.