The International Finance Corporation (IFC) has announced its first investment under the Catalytic First Loss Guarantee (CFLG) Program, partnering with Ipak Yuli Bank to expand financing for micro, small, and medium-sized enterprises (MSMEs) in Uzbekistan. Announced on 20 July 2026, the initiative will support an MSME loan portfolio of approximately $100 million in local currency, with a focus on microenterprises, women-owned businesses, and climate-related enterprises.
The innovative risk-sharing arrangement includes $18 million in guarantee coverage, comprising a $9 million first-loss guarantee backed by the IDA Private Sector Window (IDA PSW) and a $9 million senior tranche provided by IFC. The structure is expected to mobilize around $82 million in additional lending, helping bridge the financing gap faced by small businesses across the country.
MSMEs contribute more than half of Uzbekistan’s gross domestic product but continue to face significant barriers in accessing finance, with an estimated $10.5 billion unmet credit demand. The new investment aims to improve access to funding, enabling small businesses to expand operations, create jobs, and invest in sustainable growth.
The partnership builds on IFC’s long-standing collaboration with Ipak Yuli Bank, which began in 2018. Since then, IFC has provided $87 million in financing to the bank to support small enterprises, women-led businesses, and trade-focused companies. Alongside the new guarantee, IFC will also provide advisory services to strengthen the bank’s MSME products and services, further promoting inclusive economic development and climate-focused investment in Uzbekistan.
