Tashkent,Uzbekistan. September 20/gazeta.uz/ – The Asian Development Bank (ADB) has approved a $300 million sector development program aimed at expanding access to finance for micro enterprises in Uzbekistan. The initiative is designed to support the country’s efforts to provide greater financial services to unbanked and underbanked businesses, promoting sustainable and inclusive economic growth.
The funds will be distributed under the Program for the Development of the Inclusive Financial Sector, according to an announcement from the ADB press service.
“Through this loan, ADB is expanding its partnership with Uzbekistan to ensure entrepreneurs, particularly women, have equal access to financial products and services,” said Kanokpan Lao-Araya, ADB’s country director for Uzbekistan. “This will help improve their lives and livelihoods.”
Currently, state-owned commercial banks dominate Uzbekistan’s financial sector, while microfinance institutions, which are key providers of inclusive finance, make up only 0.5% of the banking system, the ADB noted.
According to the 2021 Global Findex report, only 44% of Uzbekistan’s adult population has an account with a formal financial institution, well below the regional average of 58% in Central Asia.
The limited availability of commercial microfinance has led to a significant credit gap for small and medium-sized enterprises, the ADB emphasized. The bank’s program is expected to help address this shortfall by expanding the country’s inclusive financial system and supporting Uzbekistan’s “Uzbekistan 2030” development strategy.
This initiative marks another step in the ADB’s ongoing commitment to fostering inclusive financial growth in the region.
