ADB, Ipak Yuli Bank Sign Deal to Enhance Sustainable and Inclusive Access to Finance in Uzbekistan

TASHKENT, UZBEKISTAN (8 November 2024)—The Asian Development Bank (ADB) and IPAK YULI BANK have signed a 625 billion Uzbek sum loan (equivalent to about $50 million) to enhance access to financing for urban micro, small, and medium-sized enterprises (MSMEs) in Uzbekistan.

A majority of loan proceeds will be allocated to support financial inclusion for MSMEs, 60% outside the capital of Tashkent. At least 20% of the loan will be directed towards women-owned or led MSMEs, and at least 10% will be earmarked for green technology investments. The country’s nearly half a million MSMEs are a key pillar of the economy, contributing over 50% of GDP and employing most of the working population. Even so they struggle to access bank loans, especially those run by women who often lack basic finance and management skills.

"ADB believes that supporting MSMEs is not just an investment in economic growth, but also in the social and financial welfare of communities. Small businesses are vital engines of innovation, job creation, and economic resilience,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This initiative strengthens the fabric of economies, ensuring that small businesses have the resources they need to drive green development and improve livelihoods."

“Ipak Yuli Bank has been pivotal in providing financial services to underserved regions and sectors in Uzbekistan. With this new funding, we will be able to expand our outreach and capacity to serve MSMEs, fostering inclusive economic growth,” said Saidabror Saydakhmedov, the Chairman of the Management Board of Ipak Yuli Bank.

Founded in 1990, Ipak Yuli Bank has a strong urban MSME focus and is the country’s fourth-largest private bank with 17 branches, 49 service centers, and multi-sales channels. ADB had previously been an equity investor in Ipak Yuli Bank.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.