ADB To Provide Uzbekistan With $300 Million To Support Microfinance

The Asian Development Bank (ADB) will provide the government of Uzbekistan with $300 million to support unbanked or underbanked micro-enterprises. The funds will aim to improve access to finance for micro and small businesses, primarily focusing on supporting women entrepreneurs, which ADB Director General for Central and West Asia, Eugene Zhukov, says will be an essential step towards the country's economic development and job creation. Kanokpan Lao-Araya, Director of ADB's Resident Mission in Uzbekistan, said the loan will help improve the quality of life of entrepreneurs and provide them with new financial opportunities. State-owned commercial banks primarily control Uzbekistan's financial sector, and microfinance organizations occupy only 0.5% of the system. According to Global Findex data for 2021, only 44% of Uzbekistan's adult population has accounts with formal financial institutions, well below the Central Asian average of 58%. The lack of commercial microfinance has led to a severe credit gap, especially among small businesses. Support from the ADB aims to close this gap and develop an inclusive financial system to contribute to the country's sustainable economic growth. The Asian Development Bank was founded in 1966 and has 68 member countries. Uzbekistan joined the ADB in 1995, since which time the bank has provided the country with loans, grants, and technical assistance worth $12.5 billion.