ADB offers $50m in loan to finance MSME in Uzbekistan

The Asian Development Bank (ADB) and Hamkorbank have agreed to 625-billion-Uzbek-sum loan (about $50 million) to improve access to financing for rural micro, small, and medium-sized enterprises (MSMEs) in Uzbekistan.

The loan will support financial inclusion for MSMEs outside Tashkent, with 20 per cent for women-owned businesses and 10 per cent for green technology, according to ADB’s statement.

MSMEs are vital to the economy, contributing over 50 per cent of GDP and employing most of the population, but face challenges in accessing bank loans, especially women-led businesses.

“This partnership with Hamkorbank will provide much-needed support for rural MSMEs, empowering entrepreneurs, creating jobs, and contributing to the country’s overall economic resilience,” said ADB Director General for Private Sector Operations Suzanne Gaboury.

One US dollar equals 12893.07 Uzbek sums.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama