13.
Eligibility Criteria for PFIs.
In order to become a PFI, commercial banks have to qualify
under a due diligence
procedure in accordance with a set of
operational, financial and management criteria indicated below, and have to sign
a tri-partite SLA with MOF representing Uzbekistan and UZAIFSA. To maintain its eligibility as a PFI, the commercial banks
have to meet the said criteria at all times. Potential PFIs will be individually appraised at
the outset of the project
implementation period, through a due diligence procedure, by UZAIFSA, and the recommendations will be subject to the
WB’s no objection. During the detailed due diligence assessment, particular attention will be given to the overall lending
capabilities, and financial and portfolio performance. PFI must have satisfactory financial and management structure, a
satisfactory risk-based capital adequacy, an acceptable asset quality and lending performance, adequate liquidity, and
the
organization, management and technical staff and other resources required for the efficient
carrying out of the
operations. The detailed criteria for the initial due diligence and continued maintenance of a
PFI status will be provided
in the operational manual for the credit line.
