Financial Sector Programme MSME Financing

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The financial sector project with Uzbekistan contributes to expanding the sustainable supply of affordable loans for micro, small and medium-sized enterprises (MSMEs) (investment component). The consulting services aim to strengthen the capacities of the partner financial institutions (PFIs) and to intensify the market integration of (in-)formal companies (accompanying measure). To date, there has been no sufficient, needs-based, long-term financing available for the Uzbek MSME sector. The project therefore addresses MSMEs in order to improve their access to financial services. The reform policy initiated by President Mirziyoyev at the end of 2016 pursues the goal of gradually opening up and liberalizing the Uzbek economy and society, with the privatization of previously state-owned companies and banks being the focus of government work. The agricultural sector in particular has strong potential for economic growth. The project sponsor is the Uzbek Ministry of Agriculture. The funds are passed on to PFIs, which in turn provide the participating MSMEs with final loans. The project includes measures such as selecting suitable PFIs through competitive procedures, developing a training catalogue and training materials for the different needs of the PFIs, and conducting training courses in the PFIs and in business development centers.