Tashkent, Uzbekistan (UzDaily.com) — In an effort to expand access to finance for small businesses and women entrepreneurs in Uzbekistan, the International Finance Corporation (IFC) has signed an agreement with Hamkorbank, the country’s third-largest private bank, to provide a loan of up to US$50 million.

Thirty-five percent of the loan will be allocated to businesses led by women. This initiative is part of IFC’s broader strategy to strengthen Uzbekistan’s financial sector and increase economic opportunities for small-scale entrepreneurs, who often face significant challenges in obtaining the credit needed to grow their businesses.

Despite improvements in access to capital, only 19 percent of small enterprises in Uzbekistan use formal loans, according to the World Bank Enterprise Survey 2024.

“Micro and small businesses are the backbone of Uzbekistan’s economy, driving job creation and innovation. Yet, access to finance remains a key obstacle,” said Bakhtiyorjon Juraev, Chairman of the Management Board of Hamkorbank. “Our long-standing partnership with IFC helps to close this gap by empowering local businesses, enabling their growth, and thereby contributing to the country’s economic development.”

“This investment reflects IFC’s strong commitment to supporting Uzbekistan’s financial sector and advancing inclusive growth,” said Alain Nünke, IFC Regional Director for Financial Institutions in Central Asia and Türkiye. “Through long-term financing and strategic advisory services, we are helping Hamkorbank continue its important mission to lend to local enterprises — especially those owned by women, who are vital drivers of employment and economic progress.”

The financing is being provided under IFC’s MSME Finance Platform, specifically the “Base of the Pyramid Envelope,” which aims to close the financial inclusion gap by offering medium- and long-term funding to selected financial service providers, with a focus on micro, small, and informal businesses, as well as low-income households.

IFC was the first international investor in Hamkorbank in 2001 and became the bank’s first foreign shareholder in 2010. Over the course of this long-term partnership, IFC has provided Hamkorbank with more than US$125 million in debt and equity financing, as well as support for its foreign trade operations.

In addition, IFC has helped the bank enhance its risk management systems, strengthen its capacity in agricultural finance, and adopt international standards in corporate governance and human resource management.