Asian Development Bank Partners with Hamkorbank to Support Uzbekistan's Rural MSMEs

Deal News | Dec 20, 2024 | Asian Development Bank

The Asian Development Bank (ADB) has signed a $50 million loan agreement with Uzbekistan's Hamkorbank to facilitate increased access to financing for rural micro, small, and medium-sized enterprises (MSMEs) in the country. This partnership targets enhancing financial inclusion, particularly outside Tashkent, with significant emphasis on empowering women-led MSMEs and investing in green technologies. MSMEs are crucial to Uzbekistan’s economy, making up over half of the GDP and a major share of employment. However, these businesses often struggle with access to financial services, particularly those operated by women. The deal is part of ADB's broader strategy to support inclusive economic development in Asia and underscores its commitment to sustainable growth by fostering entrepreneurship, job creation, and economic resilience in Uzbekistan.

Sectors

  • Banking and Financial Services
  • Microfinance
  • Green Technology

Geography

  • Uzbekistan – The partnership and investment are focused on enhancing financial access for MSMEs in Uzbekistan, particularly outside the capital, Tashkent.
  • Asia and Pacific Region – As part of its broader mission, the Asian Development Bank aims to support inclusive economic development in the Asia and Pacific region.

Industry

  • Banking and Financial Services – The article discusses a financial transaction involving a loan from a development bank to a local bank to enhance financial inclusion for MSMEs.
  • Microfinance – The target of the financial support is rural micro, small, and medium-sized enterprises (MSMEs), which often rely on microfinance solutions.
  • Green Technology – Part of the loan is earmarked for investments in green technology, highlighting the importance of sustainable practices in financial decisions.

Financials

  • $50 million – The amount of the loan provided by ADB to Hamkorbank.
  • 625 billion Uzbek sum – The local currency equivalent of the ADB loan to Hamkorbank.

Participants

NameRoleTypeDescription
Asian Development BankLenderCompanyA multilateral development bank committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and Pacific region.
HamkorbankBorrowerCompanyUzbekistan’s third-largest private bank, focused on providing financial services with a strong rural presence.
Suzanne GabouryADB Director General for Private Sector OperationsPersonAn executive at ADB who highlights the strategic importance of this financial deal.
Bakhtiyorjon JuraevCEO of HamkorbankPersonCEO of Hamkorbank highlighting the importance of ADB’s financial support in Uzbekistan’s reform efforts.