ADB will allocate $100 million to Uzbekistan to support small and medium-sized businesses

The Asian Development Bank has allocated a loan of $100 million to Uzbekistan to support small and medium-sized businesses, Spot reports, citing the bank’s press service.

The loan is provided as part of the second phase of ADB’s small and medium-sized enterprise development program, aimed at stimulating economic growth through the private sector.

“As the country continues to implement key structural reforms to transition from a state-owned economy to a market economy with a prudent overall macroeconomic position, SMEs (small and medium-sized enterprises – Spot note) will play a significant role in accelerating diversified economic growth, productivity and value-added formal employment”, – said ADB Director General for Central and Western Asia Evgeny Zhukov.

Among the challenges facing small and medium-sized businesses in Uzbekistan is limited access to a variety of forms of financing, especially in the financial sector, which is dominated by banks with high interest rates and collateral requirements.

The program will help ease regulatory and administrative burdens that increase the cost of doing business and disproportionately impact women’s businesses. The trade competitiveness of small and medium-sized companies will also improve through export diversification and productivity.