Signing of a Loan Agreement for Support Project for Micro, Small and Medium-sized enterprises (MSMEs) in Uzbekistan (Private Sector Investment Finance): improving access to finance for MSMEs JICA signed a loan agreement in October 2023 with the JSCB "Hamkorbank", a commercial bank in the Republic of Uzbekistan, for Private Sector Investment Finance of up to US$35 million. The funds from this loan will be used to finance MSMEs. The loan is co-financed with International Finance Corporation ("IFC") based on the Facility for Accelerating Financial Inclusion (FAFI), a US$1.5 billion debt facility launched in May 2023 for promotion of an enhanced level of financial inclusion in developing nations.
MSMEs play a crucial role in the Uzbekistan's economy, accounting for about 54% of GDP and 78% of the employment. However, the number of MSMEs with access to bank loans in Uzbekistan remains at a low level of approximately 22%. The promotion of MSMEs is very important for the further development of the country's economy, therefore improving their access to finance is an urgent issue.
This project aims to contribute to the sustainable economic development of MSMEs in Uzbekistan by improving their access to finance, thereby contributing to SDG Goals 8 (Decent work and economic growth) and 17 (Partnerships for the goals). JICA will continue to support MSMEs' access to finance in Uzbekistan and other countries around the world and will mobilize private sector funds for such projects.
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