Japan International Cooperation Agency (JICA) and Hamkorbank JSCB signed a loan agreement to allocate US $35 million to support micro, small and medium-sized enterprises (MSMEs) in Uzbekistan

Tashkent 15/10/2023

A loan agreement was officially signed today at the Hyatt Regency Tashkent between the Japan International Cooperation Agency (JICA) and the Joint-Stock Commercial Bank with Foreign Capital "Hamkorbank" to finance investments in the private sector in the amount of up to US $35 million.

The agreement aims to provide funds to improve access to finance for micro, small and medium-sized enterprises (MSMEs) in Uzbekistan and improve private sector investment finance.

MSMEs play a critical role in Uzbekistan's economy, accounting for about 54% of GDP and 78% of the employment. “Taking into account the importance of MSME enterprises in the structure of the country's economy, we believe that the loan funds provided by the Japan International Cooperation Agency and its capable management by the bank will significantly improve the availability of loans for MSMEs, and as a result, will have a positive effect on the growth of the economy of the Republic of Uzbekistan.” – stressed the Chairman of the Board of JSCB "Hamkorbank" Bakhtiyorjon Djuraev.

The project aims to promote the sustainable economic development of MSMEs in Uzbekistan by improving their access to finance, thereby contributing to the achievement of Goals 8 (Decent Work and Economic Growth) and 17 (Partnerships for Achievement) of UN‘s Sustainable Development Goals.

The loan is co-financed by the International Finance Corporation (IFC) through the Accelerated Financial Inclusion Facility (FAFI), a US $1.5 billion debt program launched in May 2023 to help improve financial inclusion in developing countries.

Speaking at the event, JICA Senior Vice President Imoto Sashiko reaffirmed the organization's commitment to supporting MSMEs to access finance in Uzbekistan and mobilizing private sector funds for the implementation of such projects.

The JICA representative office established in Tashkent in 1999 and carries out projects in such priority areas as: updating and improving economic infrastructure, promoting human resource development and institution building to accelerate the transition to a market economy, stimulating the economy and industry, as well as promoting social restructuring sectors (agriculture and rural development and health).

JSCB "Hamkorbank" was in established 1991 and represented by the wide network of 153 network of offices throughout the Republic of Uzbekistan. The bank is one of the three largest banks in the republic in the field of microfinance indicators.

Useful links:

Establishment of the Facility for Accelerating Financial Inclusion (FAFI) (Private Sector Investment Finance): Improving access to finance and promoting the empowerment of women, low-income people, and micro, small and medium enterprises
https://www.jica.go.jp/english/information/press/2023/20230524_33.html
JSCB "Hamkorbank" official website

https://www.hamkorbank.uz/about-bank/