BAKU, Azerbaijan, April 26. The European Bank for Reconstruction and Development (EBRD) may provide a two-year senior loan worth $25 million to Uzpromstroybank JSCB (UzPSB) to support Uzbekistan’s local small and medium companies and private entrepreneurs, Trend reports via EBRD.
The bank says that the loan is expected to be provided in two tranches: the first tranche in the amount of $15 million, and the second tranche – of $10 million, which will also be uncommitted.
EBRD notes that the mentioned sum of money, provided under the Financial Intermediaries Framework ("FIF"), would support UzPSB's funding base and enable the bank to continue local currency lending to small and medium-sized businesses, as a result, the number of SMEs will also increase countrywide.
“The project will support the Inclusive (Primary TI quality) and Competitive (Secondary TI quality) transition qualities. The TI impact under the Inclusive quality stems from supporting the client to increase access to finance for SMEs in the regions that remain under-served locally by the sector”, the bank says.
Furthermore, as of the beginning of April 2023, the loan portfolio of the European Bank for Reconstruction and Development projects in Uzbekistan is estimated at 2.4 billion euros.
In general, the bank has invested more than 4.1 billion euros in 129 projects in Uzbekistan.