The Asian Development Bank (ADB) has agreed to provide a $300mn loan to the government of Uzbekistan to enhance financial access for micro and small enterprises. This funding will primarily target unbanked and underbanked businesses, with a specific focus on supporting women entrepreneurs. According to Eugene Zhukov, ADB Director General for Central and West Asia, this initiative is expected to play a key role in advancing Uzbekistan’s economic development and creating new employment opportunities.
Kanokpan Lao-Araya, Director of ADB’s Resident Mission in Uzbekistan, noted that the loan will offer entrepreneurs new financial opportunities and improve their overall economic conditions. Uzbekistan’s financial system is currently dominated by state-owned commercial banks, with microfinance organizations accounting for only 0.5% of the sector. The ADB funding aims to address this imbalance by fostering the growth of microfinance institutions.
According to Global Findex data from 2021, only 44% of Uzbekistan’s adult population holds accounts with formal financial institutions, a figure significantly lower than the Central Asian average of 58%. The limited availability of commercial microfinance has resulted in a significant credit gap for small businesses. ADB’s loan is intended to reduce this gap and help develop a more inclusive financial system, supporting the country’s sustainable economic growth.
Founded in 1966, the Asian Development Bank has 68 member countries. Uzbekistan has been a member of ADB since 1995, receiving over $12.5bn in loans, grants, and technical assistance. The current loan is part of ADB’s broader effort to promote financial inclusion and support long-term economic development in Uzbekistan.
