The Asian Development Bank (ADB) approved a $300 million sector development program to support the government of Uzbekistan’s efforts to expand access to finance for unbanked and underbanked microenterprises, fostering sustainable and inclusive growth in the country.
The funds are being allocated within the framework of the Program for the Development of the Inclusive Financial Sector, the bank press service said.
“Through this loan, ADB is expanding its partnership with Uzbekistan to ensure entrepreneurs, in particular women, have equal access to financial products and services. This will help improve their lives and livelihoods,” ADB country director for Uzbekistan Kanokpan Lao-Araya said.
State-owned commercial banks dominate the country’s finance sector while microfinance organizations, which provide inclusive finance, represent only 0.5% of the banking system, ABD noted.
According to 2021 Global Findex data, only 44% of Uzbekistan’s adults possess an account with a formal financial institution — significantly lower than the regional average of 58% in Central Asia.
The nascent level of commercial microfinance has resulted in a significant credit gap within the inclusive finance market for small and medium-sized enterprises, ADB said in a press release.
ADB’s support will help the government address the credit gap, expand the inclusive finance system, and promote sustainable and inclusive growth in line with the country’s development plan “Uzbekistan 2030” Strategy, the bank added.
