Tashkent, (TDI): The Asian Development Bank (ADB) has announced a $300 million loan to the government of Uzbekistan aimed at bolstering unbanked or underbanked micro-enterprises.
This funding is expected to enhance access to finance for micro and small businesses, with a particular emphasis on supporting women entrepreneurs.
Eugene Zhukov, ADB’s Director General for Central and West Asia, highlighted that this initiative is a crucial step toward the country’s economic development and job creation.
Kanokpan Lao-Araya, Director of ADB’s Resident Mission in Uzbekistan, noted that the loan will significantly improve the quality of life for entrepreneurs and open new financial opportunities.
Uzbekistan’s Financial Sector
Currently, Uzbekistan’s financial sector is largely dominated by state-owned commercial banks, while microfinance organizations represent a mere 0.5% of the system.
According to Global Findex data from 2021, only 44% of Uzbekistan’s adult population has access to accounts with formal financial institutions, falling below the Central Asian average of 58%.
Also Read: ADB Reiterate Support for Pakistan’s Economic Reforms
The limited availability of commercial microfinance has created a substantial credit gap, particularly for small businesses.
The support from ADB aims to address this gap and foster an inclusive financial system, contributing to the country’s sustainable economic growth.
Established in 1966, the Asian Development Bank has 68 member countries.
Also Read: ADB Unveils New Strategy for Uzbekistan
Uzbekistan became a member in 1995 and has since received loans, grants, and technical assistance totaling $12.5 billion from the bank.
