After the adoption of the Decree of the President of the Republic of Uzbekistan “On measures to further expand and deepen partnerships with the Islamic Development Bank Group and the funds of the Arab Coordination Group” dated March 5, 2019, as part of the development of the infrastructure of Islamic finance in the banking sector of the Republic of Uzbekistan, it was determined to attract consulting support from the Islamic Development Corporation private sector.
In addition, in the Resolution of the Cabinet of Ministers “On measures to further develop cooperation with the Islamic Development Bank Group and the funds of the Arab Coordination Group” dated May 23, 2019, special attention is paid to the further expansion of cooperation with the Islamic Development Bank Group and the Arab Coordination Group.
In order to ensure the implementation of the above resolutions, on August 22, 2019, an Agreement “On the provision of Advisory assistance” was signed between the private joint-stock bank “Trustbank” and the Islamic Corporation for the Development of the Private Sector (ICD). In accordance with it, it is planned to introduce the Islamic Window service into the banking system. This, in turn, will serve to finance small and medium-sized businesses on the terms of cooperation and Sharia.
Also, in this regard, priority was given to issues such as enriching the knowledge and skills of staff. In particular, in order to improve the knowledge and skills of the Bank’s employees, practical exercises were held on the introduction of Islamic finance services with the participation of experts from ICD and the Islamic Research and Education Institute (IRTI), which is part of the Islamic Development Bank Group. 30 employees of “Trustbank” who successfully passed these training seminars received special certificates from the educational institution of the Islamic Development Bank.
One more aspect. For the successful implementation of the project, on the recommendation of ICD, PJSB “Trustbank” signed a contract with one of the leading companies in the development of software for Islamic banking – the Jordanian ICS Financial Systems. In order to study the capabilities and functionality of the software, ICSFS specialists conducted a three-month practical training for bank employees.
Undoubtedly, such efforts and mutual cooperation bring positive results. In particular, a base is being created for the provision of financial services to our compatriots on the basis of Islamic Sharia.
On January 10, the opening ceremony of Trust Muamalat Limited Liability Company, a subsidiary leasing company of the private joint-stock bank Trustbank, took place.
It was attended by the management of PJSB “Trustbank”, the chief specialist of the consulting service department of the department for making investments in the capital of the Islamic Corporation for the Development of the Private Sector Muzaffar Nizamiddinov, representatives of the public, as well as media workers.
It was noted that the main task of “Trast Muamalat” LLC is to implement, within the framework of the current legislation, a strategy for expanding financial services through the implementation of effective operations “Murabaha (trade with the condition of payment in installments)” and “Ijara (leasing)”, as well as expanding cooperation with international Islamic financial institutions.
Successful long-term cooperation of “Trustbank” with the group of the Islamic Development Bank (IDB) allows LLC “Trust Muamalat” to attract financing lines of IDB corporations. In addition, this stage of development will stimulate the company to finance projects of individuals, small and medium-sized businesses, expand their activities and create new jobs.
The Company is also engaged in the study and implementation of Sharia-compliant financial products that are planned to be offered in the current legal environment.
