Within the framework of the "Capacity building and strengthening foreign trade and investment promotion institutions in Uzbekistan" project implemented jointly with the Ministry of Foreign Economic Relations, Investments and Trade, UNDP supports Government of Uzbekistan in strengthening institutional and regulatory environment to further facilitate foreign trade development and enhance its contribution to sustainable economic growth and poverty reduction.

As part of this support the project works on policy advice research on perspectives and practical aspects of export-import bank foundation in to stimulate export of goods with high value added through the set of specially designed financing tools. In order to get consensus on the main issues of export-import bank creation, the project actively involves main stakeholders from public and private sectors into the relevant policy dialogue. Project’s experts also actively study available analytical materials and case studies on international experience in this field which can help to avoid possible mistakes while establishing and operating such bank in Uzbekistan.

In order to get deeper understanding of successful export-import bank foundation and operations while discussing relevant issues in the context of Uzbek socio-economic situation, the project in partnership with another UNDP project "Support to Investment Process for National Development" arranged 5-day study tour (15-19 May 2007) to Prague, – the country that has successfully developed and implemented efficient institutional and regulatory system of export promotion and financing.

It must be highlighted that the study tour has been supported and co-financed by Czech-UNDP Trust Fund administered by UNDP Regional Center in Bratislava within UNDP’s Emerging Donors Initiative (EDI). (The EDI was launched as a response to increasing demand for transition expertise and best practices from emerging donor countries in Central and Eastern Europe which successfully overcame transition process and now in a position to provide effective knowledge to development community).

During the study tour the Uzbek delegation consisting of representatives of Ministry of Economy, Central Bank of Uzbekistan, National Bank of Uzbekistan for foreign Economic Activity, Fund for Reconstruction and Development of Uzbekistan, "Uzbekinvest" National export -import insurance company and project’s experts had a number of meetings and briefings with representatives of Ministry of Industry and Trade of the Czech Republic, Czech Export Bank (CEB), Czech Export Insurance and Guarantying Corporation (EGAP), and CzechTrade.

Czech Republic’s experience reveals that export-import bank (CEB) and export credit agency (EGAP) are the main pillars of Government’s export promotion policy, particularly, to the countries with high commercial and political risks. Exports that normally can not be supported by commercial banks and insurance companies are promoted through the above institutional tools. Export financing and insuring schemes of Export Bank and EGAP also support exporters in exploring new markets for their products. The other feature of these institutions is that they predominantly finance export of capital goods (machinery, transportation, energy, construction sectors). CEB and EGAP in implementing export promotion strategy are supplemented by CzechTrade of Ministry of Industry and Trade and other ministries and agencies. It is worth mentioning that operations of both CEB and EGAP are guaranteed by Czech Government.

The study tour was also useful for participants to learn how the whole system of export promotion is effectively institutionalized in Czech Republic . According to Mr. Shavkat Inamov, First Deputy General Director of the National Export and Import Insurance Company "Uzbekinvest" who headed the Uzbek delegation, "Czech experience is good example for learning how a transition country can create and run well-functioning export promotion system. Whereas institutional tools are important for export promotion, they should come along with relevant regulatory measures in order to make system work". The immediate implication by participants of the study tour is that the project researchers and consultants should think about creation of two independent, but inter-related export -supporting institutions: export -import bank and export insurance agency in Uzbekistan.

Knowledge and experience gained in Czech Republic will help project’s experts and involved main stakeholders to finalize policy advice report and related normative acts on export financing strengthening and foundation of export -import bank in Uzbekistan.