ADB to provide a $100 million loan to Uzbekistan

BUSINESS 09 July 2016 710

The Asian Development Bank (ADB) has approved a loan worth $ 100 million for Uzbekistan’s four financial institutions for the financing of small business, reported ADB’s press service.

The loan will be allocated to PJSCB «Davr Bank», JSCB "Hamkorbank", JSICB "Ipak Yuli" and leasing company «Uzbek Leasing International A.O.».

The loan will help to meet the growing demand for credit and leasing from small businesses and private entrepreneurs entities. Borrowed funds will be allocated to small business entities at market rates. To ensure a wider coverage of small businesses by participating financial institutions, the maximum amount of sub-loan is set at $300,000, which is 3 times higher than the amount in the previous ADB’s sub-loan project. In addition, the project provides the allocation of at least 20% of the sub-loans to small business entities, which are owned by women, and at least 60% of small businesses outside the capital.

The Grant of technical assistance in the amount of $500,000 will be financed by the Government of Luxembourg through a special partnership development fund of the financial sector and administered by ADB. Technical assistance will help to strengthen the policies and procedures of participating financial institutions, enhancing the capacity of small business’s financing. Also as part of the technical assistance extensive financial literacy training program for small business entities - customers of participating financial institutions will be carried out.

The project will be implemented within 5 years, and the completion date is December of 2021.

Source: Jahonnews.uz

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