Ipak Yuli Bank and ADB Sign $50 Million Loan Deal for Uzbek MSMEs

The Asian Development Bank (ADB) and Ipak Yuli Bank have finalized a 625 billion Uzbek sum loan agreement, equivalent to approximately $50 million, designed to improve access to financing for micro, small, and medium-sized enterprises (MSMEs) throughout urban areas in Uzbekistan. This venture aims to allocate 60% of the funding to regions beyond Tashkent, with a focus on promoting financial inclusion. Additionally, the agreement prioritizes gender equality and environmental sustainability by dedicating at least 20% of funds to women-owned or led MSMEs and 10% toward green technology projects. MSMEs are a crucial component of the Uzbek economy, responsible for over 50% of GDP and predominantly employing the nation's workforce. Despite their significance, these enterprises frequently face substantial barriers to securing bank loans, particularly those owned by women who often suffer from a lack of financial and managerial expertise. ADB's Director General for Private Sector Operations, Suzanne Gaboury, emphasizes the institution's commitment to fostering economic growth and social welfare via investment in small businesses. Meanwhile, Ipak Yuli Bank, led by Chairman Saidabror Saydakhmedov, aims to expand its services across underserved regions and sectors, supported by its historical position as an equity investor in ADB's operations. The collaboration underscores both parties' dedication to inclusive, sustainable development across Asia and the Pacific.