World Bank approves USD 250 Million credit project for Uzbekistan

The World Bank’s Executive Directors have approved a USD 250 million credit for Uzbekistan, PR and Communications Department of the Ministry of Economy and Finance reports.

The financing will support the implementation of a new program, the EduImkon Program, aimed at expanding access to student financing in higher and professional education. The program, to be implemented during 2026–2028, focuses on reforming the student loan system, increasing its coverage, and enhancing long-term sustainability.

The project will be financed through the World Bank’s Program for Results instrument, with disbursements linked to the achievement of specific results (Disbursement Linked Indicators). This marks the first time Uzbekistan will implement a project using this financing modality.

Over the next three years, the program is expected to expand access to student loans for 600,000 young people. Nearly 80 percent of the allocated funds will be directed toward supporting students from low-income families and women.

Recognizing the large share of young people aged 14–30 (approximately 10 million), the Government of Uzbekistan has prioritized expanding access to higher, technical, and vocational education. As a result of ongoing reforms, the number of higher education institutions has nearly tripled in recent years, and the higher education enrollment rate increased from 8 percent in 2017 to 48 percent in 2024.

At the same time, the rapid growth in student numbers has increased pressure on the state budget and challenged the sustainability of the subsidized student loan system currently administered through commercial banks. Moreover, the system remains insufficiently aligned with labor market needs. Enrollment in STEM and ICT programs, which offer higher income prospects, remains low, limiting graduates’ opportunities for gainful employment.

Although women constitute 55 percent of all students and 80 percent of student loan recipients, only 33 percent of female students are enrolled in STEM fields, where labor market demand is strongest.

The EduImkon Program, implemented by the Ministry of Economy and Finance, encompasses the following key components:

– modernization of the student loan system, development of a clear roadmap, and strengthening of interagency coordination;

– establishment of a unified online platform to simplify and accelerate the loan application process, while improving transparency and efficiency through enhanced analytical data;

– simplification of loan access criteria and enhancement of support mechanisms for low-income families and women, thereby expanding access to education;

– alignment of education financing mechanisms with labor market needs and ensuring long-term financial sustainability of the student loan system;

– development and piloting of income-contingent repayment mechanisms to support low-income graduates and those facing temporary unemployment.

By December 2028, around 600,000 students in higher, technical, and vocational education institutions are expected to benefit from the modernized system. Student loans will be issued through 12 commercial banks operating under agreements with the Ministry of Economy and Finance.

More than USD 190 million of the program funds will be directed toward supporting socially vulnerable groups, including youth from low-income families and women. The program will also incentivize enrollment in high-demand fields such as STEM.

In addition, the EduImkon Program aims to attract an additional USD 30 million in private capital, further expanding access to student financing and reducing pressure on the state budget.