TASHKENT, Uzbekistan, September 16. International Finance Corporation (IFC) will provide a loan in the amount of $10 million to Uzbekistan’s Ipak Yuli Bank to support lending to small scale business enterprises, Trend reports.
The partnership of IFC and Ipak Yuli Bank is aimed at increasing financing of small and medium scale businesses, including enterprises owned by women, as well as promoting inclusive economic growth of the country.
IFC investments will allow Ipak Yuli Bank to increase its loan portfolio and provide much-needed financing to the country’s small enterprises. Small scale businesses play an important role in economic development and job creation in Uzbekistan. Moreover, supporting women-owned enterprises will promote gender equality and economic empowerment of Uzbek women.
This project is a continuation of IFC's cooperation with Ipak Yuli Bank, which began in 2018. Since then, IFC has provided the bank with financing in the amount of $25 million to support small and medium scale enterprises in hopes to increase labor productivity and reduce poverty in the country. The financing provided by the corporation is in line with its project of promoting sustainable and inclusive economic development in Uzbekistan.
Earlier this month, Uzbekistan established a Business Development Bank to provide additional support for local small businesses. Furthermore, National Bank of Uzbekistan and Standard Chartered, a British multinational bank, have concluded an agreement to attract a credit line in the amount of $100 million.
The credit line from Standard Chartered is directed towards financing investment projects in small and medium-sized businesses in sectors such as alternative energy, electrical engineering, textiles, transportation, telecommunications, and others.