The OPEC Fund for International Development has extended a $30 million loan to Ipak Yuli Bank, the organisation announced on Monday. This is the fund’s first direct financing of a privately owned bank in Uzbekistan.
The OPEC Fund for International Development has extended a $30 million loan to Ipak Yuli Bank, marking its first direct financing to a privately owned bank in Uzbekistan, the organisation announced on Monday.
The loan aims to expand financing access for micro, small and medium-sized enterprises (MSMEs), with a particular focus on supporting women-owned businesses in the central Asian country.
The agreement complements a broader five-year, $500m partnership framework established earlier this year to support Uzbekistan’s economic development priorities, including private sector expansion.
Abdulhamid Alkhalifa, President of the OPEC Fund, said the partnership reflected a “targeted approach” to supporting Uzbekistan’s private sector transformation. “By facilitating finance access, we are helping unlock potential for sustainable economic growth,” he said.
MSMEs currently account for 54% of Uzbekistan’s gross domestic product (GDP) and employ 78% of the workforce. However, these businesses frequently encounter challenges in securing affordable credit. As of 2019, the MSME financing gap stood at $11.8 billion in 2019, equivalent to 17.7% of the country’s GDP.
Saydakhmedov Saidabror, chairman of Ipak Yuli Bank’s management board, described the agreement as an “important step” in supporting the country’s enterprise sector. The loan is expected to enable the bank to scale up support for small businesses, potentially stimulating broader economic development in the region.
