Private entrepreneurs in Uzbekistan will benefit from better access to finance thanks to the first EBRD-arranged syndicated loan of up to US$ 20 million to JSCI Bank Ipak Yuli, one of the country’s largest privately-owned commercial banks.
The loan consists of an A-loan of up to US$ 10 million for the EBRD’s own account, while the remaining US$ 10 million is syndicated as a B-loan to FMO. The proceeds will be available either in US dollars or in synthetic Uzbek som (UZS).
The loan will allow Bank Ipak Yuli, a leading private financial institution in Uzbekistan established in 1990, to diversify its funding base, expand its micro, small and medium-sized enterprise (MSME) client base and offer loans with longer maturities to businesses around the country.
MSMEs are particularly important for Uzbekistan as they are responsible for about 60 per cent of GDP and employ almost 80 per cent of the country’s workforce.
Bank Ipak Yuli will benefit from tailored technical assistance covering various areas of MSME lending and risk management under the financial institutions development programme in Uzbekistan.
