ADB Allocates US$300 Million to Uzbekistan to Expand Access to Financing for Small Businesses

Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB) has approved a US$300 million loan to Uzbekistan, including US$100 million on concessional terms, to support the government’s efforts to expand access to financing for micro, small, and medium-sized enterprises, particularly those led by women. The funds will also strengthen the microfinance sector and promote inclusive economic growth.

This funding represents the second subprogram of the Inclusive Financial Sector Development Program, which continues and deepens reforms initiated under the first phase. The subprogram focuses on establishing sustainable legal and institutional foundations for inclusive financing.

Key priorities include increasing the maximum size of microloans, improving the regulatory framework for microfinance, Uzbekistan’s accession to the International Code of Women’s Entrepreneurial Finance, and developing regulatory frameworks for Islamic microfinance. These measures are expected to broaden financial opportunities for vulnerable groups and contribute to the sustainable development of the sector.

“ADB is proud to support Uzbekistan’s transition to a more inclusive, market-oriented financial system,” said Kanokpan Lao-Araya, Director of the Bank’s Resident Mission in Uzbekistan. “Implementation of the program will expand financing access for self-employed individuals and micro-entrepreneurs, strengthen consumer protection, and advance gender equality.”

Subprogram 2 introduces new policy measures aimed at enhancing consumer protection and promoting gender equality in the financial sector. These measures include updating responsible lending principles, regulating new products such as “buy now, pay later” services, and developing digital financial supervision mechanisms. Gender policy is a particular focus: the program will introduce gender-disaggregated reporting and establish quotas for financing projects led by women.

An evaluation of the 2021–2023 National Financial Inclusion Strategy notes that 60% of Uzbekistan’s adult population already has accounts in formal financial institutions. This achievement is linked to the rapid development of digital financial services, which expand citizens’ access to banking products and improve financial literacy.

A key component of the program is the structural transformation of the microfinance sector. Plans include the creation of microfinance banks that accept deposits, significantly increasing financing volumes for small businesses. For this purpose, a regulatory and supervisory framework is being developed based on risk assessment and financial stability principles. Two preliminary licenses for the establishment of such banks have already been issued.

The program is supported by technical assistance aimed at strengthening institutional capacity and ensuring the sustainability of reforms. The second subprogram is part of a long-term strategy that includes a planned third phase for 2025–2027, which will focus on further strengthening financial sector infrastructure and enhancing the effectiveness of reform implementation.