Asian Development Bank to provide $300 mln to Uzbekistan to expand access to finance for small businesses

TASHKENT. Nov 12 (Interfax) - The Asian Development Bank (ADB) has approved a $300 million loan, including $100 million on concessional terms, to support the government of Uzbekistan's efforts to expand access to finance for underserved micro, small, and medium enterprises.

The loan aims to stimulate inclusive economic growth and foster entrepreneurship, the bank said in a press release.

As noted, the new subprogram 2 will continue and broaden key reforms initiated under subprogram 1 of the program to create a sustainable legal and institutional framework for inclusive finance that the ADB approved in September 2024.

Planned measures include increasing the maximum microloan size, improving microfinance regulations, joining the International Code on Financing Women Entrepreneurs, and developing a regulatory framework for Islamic microfinance.

Key initiatives include updating responsible lending guidelines, regulating new financial products such as "buy now, pay later," and improving digital financial oversight.

"The program will open access to finance for the self-employed and micro-entrepreneurs, promote gender equality, and improve consumer protection in the financial sector," ADB Country Director for Uzbekistan Kanokpan Lao-Araya said in the statement.

Uzbekistan joined the ADB in 1995, since when the bank has provided the country with loans, grants, and technical assistance totaling $14.6 billion.