BAKU, Azerbaijan, October 6. The potential for the financial sector development in Central Asia is very high. This is particularly relevant for Uzbekistan given the size of its population and rather low penetration of banking services, Andi Aranitasi, Head of the European Bank for Reconstruction and Development (EBRD) office in Uzbekistan told Trend in an exclusive interview.
"The Bank is supporting the banking sector as well as non-banking financial institutions such as insurance, leasing companies and microfinanciers of Central Asia in multiple ways, including the support of trade and provision of funding to be used to improve access to finance for micro, small and medium-sized enterprises and equity investments in local banks and non-bank institutions," he said.
According to Aranitasi, special efforts are put in place to support the green, inclusive and digital direction of partner financial institutions by specially designed programs including Women in Business and Youth in Business.
"They promote women entrepreneurship and create work opportunities for young businessmen. The most recent program is targeting digitalization of women-led/woman-owned businesses," the official explained.
Green agenda is equally important for the EBRD, Aranitasi noted, adding that the Bank's Green Economy Financing Facility (GEFF) Uzbekistan Framework is not only encouraging green financing but also helping the Central Bank of Uzbekistan and partner-banks to build their climate risk mitigation capacity in line with the Paris Agreement the requirements.
Secondly, the EBRD is implementing capacity building advisory projects aimed at sharing best practices in banking sector of the Central Asia with the local financial institutions, the EBRD head of office said.
Further speaking, Aranitasi noted that the EBRD partner-banks participate in regional and international training and networking events.
"This helps them stay in touch with the most recent global industry trends and exchange views and experiences. We continue promoting environmental, social and governance (ESG) standards and good corporate climate governance (CCG) among financial institutions in the region. They will develop and implement guidelines and regulations to support the region’s transition to a low-carbon and climate-resilient economy," he explained.
Aranitasi pointed out that the EBRD supports financial institutions in adopting a strategic approach to addressing ESG and climate-related risks, as well as to enhance CCG. The Bank currently has 11 financial partners in Uzbekistan and actively engage with them in green and inclusive lending as well as in support of interregional and international trade.