Microcreditbank, UNDP sign agreement on microcrediting

Tashkent, Uzbekistan (UzDaily.com) -- Microcreditbank open joint-stock commercial bank and the UN Development Programme (UNDP) have signed an agreement on microcredit capital.

The sum of project is 652 358 857 soums and the project term is a year. Target auditory of the project is economic active clients.

The joint project envisages to allocate necessary resources to hold organizational reforms, necessary for introduction and piloting new mechanisms of microcredits without pledges on the base of methodology on crediting of solidary guarantee groups in district of Namangan, Andijan, Ferghana, Kashkadarya, Surkhandarya regions.

Microcreditbank will issue microcredits without pledge based on solidarity group throught its branches to businesses and other income-bearing activity with use of financial resources of UNDP and the bank, small and private businesses, farmers and population with low income level in above-mentioned regions.

Group credits, which will be introduced in regions, will provide financial resources to low income people and form group of debtors, connected with solidarity obligations, which will serve as guarantee for debtors’ solvency.