Uzbekistan: Second Small and Microfinance Development Project
The project aims to increase in microfinance loans to financially viable sub-borrowers (men and women). It also aimed to deliver training to improve the entrepreneurial capacity of sub-borrowers, including women and microcredit organizations. To meet the demand for micro and small enterprise (MSE) credit, the project was designed to catalyze lending to MSEs by working with participating commercial banks. These banks were required to commit to sustainable MSE financing and must meet a set of criteria. To facilitate access to credit by MSEs, the project comprised a $50 million loan to be channeled through the three banks for onlending to viable MSEs, and a technical assistance grant of $600,000 to improve the MSE financing capacity of banks’ and their sub-borrowers’ entrepreneurial skills. To demonstrate their commitment to the MSE sector, these banks were required to match the ADB credit allocation with their own funds.
This report validates the completion report’s assessment of the project. IED overall assessment: Successful.