Tashkent, Uzbekistan (UzDaily.com) -- The European Bank for Reconstruction and Development (EBRD) is supporting the growth of Uzbekistan’s private sector, by extending a US$25 million loan to Sanoat Qurilish Bank (SQB), for on-lending to small and medium enterprises (SMEs).  

The loan, provided in local currency equivalent, will support SQB’s funding base and enable the bank to expand its local currency lending to SMEs in Uzbekistan including in under-served regions, promoting further financial inclusion for entrepreneurs in hard-to-reach areas.  

Access to finance is critical for economic growth and inclusive development, but remains limited, particularly for smaller companies, due to affordability and availability of credit on the Uzbek market. The new facility will contribute towards closing the existing lending gap, which is particularly pronounced for businesses outside of the capital city, Tashkent.  

It builds on the existing successful cooperation between the EBRD and SQB on promoting SME, trade and green lending in Uzbekistan, and further promotes the resilience of the Uzbekistan financial sector.  

“We are delighted to continue our cooperation with our partner SQB, to support access to finance for small businesses in Uzbekistan, especially in under-served regions to promote financial inclusion. We are particularly pleased to sign this project at our Annual Meeting in Samarkand, which underscores our confidence in SQB’s strong business model, and adherence to the reform agenda in Uzbekistan’s banking sector,” said Francis Malige, MD, Financial Institutions.  

Sanoat Qurilish Bank (formerly known as Uzpromstroybank) JSCB is second largest bank in Uzbekistan, and an existing client of the EBRD.  

The EBRD is a leading institutional investor in Uzbekistan, with more than €4 billion invested in 135 projects.