The Asian Development Bank (ADB) has approved a $300 million policy-based loan, including $100 million in concessional financing, to support Uzbekistan’s efforts to expand access to finance for underserved micro, small, and medium-sized enterprises (MSMEs), particularly those led by women. The initiative also aims to strengthen the country’s microfinance sector and promote inclusive economic growth.
This approval marks the launch of Subprogram 2 of the Inclusive Finance Sector Development Program, which builds upon foundational reforms established under Subprogram 1. These reforms include expanding microloan limits, modernizing microfinance regulations, joining the Women Entrepreneurs Finance Code, and developing an Islamic microfinance framework. The program is designed to advance legal and institutional frameworks that foster broader access to financial services.
According to ADB Country Director for Uzbekistan Kanokpan Lao-Araya, the initiative supports Uzbekistan’s transition toward a more inclusive and market-oriented financial system. The program will enhance access to finance for self-employed individuals and microentrepreneurs, promote gender equality, and strengthen consumer protection mechanisms within the financial sector.
Subprogram 2 also introduces new policy actions aimed at improving consumer protection by updating responsible lending guidelines, regulating new financial products such as “buy now, pay later,” and enhancing digital financial oversight. It further strengthens gender-inclusive finance by implementing gender quotas in financing and introducing sex-disaggregated data reporting across institutions.
An assessment of Uzbekistan’s National Financial Inclusion Strategy (NFIS) for 2021–2023 shows that financial inclusion has significantly improved, with 60% of adults now holding accounts at formal financial institutions—largely due to the rapid rise of digital finance. The program also supports transforming the microfinance sector by allowing the creation of deposit-taking microfinance banks, supported by a robust risk-based regulatory and supervisory framework to ensure financial stability. Two preliminary licenses for such banks have already been granted.
In addition to policy support, the program includes technical assistance to build institutional capacity and ensure the long-term sustainability of reforms. Subprogram 2 forms part of a multi-phase initiative, with a proposed Subprogram 3 (2025–2027) aimed at further strengthening implementation and institutional frameworks.
This year marks the 30th anniversary of the partnership between ADB and Uzbekistan. Since joining ADB in 1995, Uzbekistan has received a total of $14.6 billion in public sector loans, grants, and technical assistance. ADB continues to play a leading role in fostering inclusive, resilient, and sustainable growth across Asia and the Pacific through innovative financing and strategic partnerships.
