The European Financial institution for Reconstruction and Improvement (EBRD) is lending as much as $50 million (€42.7 million) to Uzbekistan’s Ozhanoa Krylish Financial institution, generally known as SQB, to increase lending to younger entrepreneurs as small and medium-sized enterprises proceed to face obstacles in accessing financial institution financing.
The mortgage is offered underneath the EBRD’s Youth in Enterprise Program for Central Asia and is focused at micro, small and medium-sized enterprises run or owned by entrepreneurs underneath the age of 35.
The deal with younger enterprise homeowners displays Uzbekistan’s demographics. In accordance with official statistics, as of early 2025, there will likely be 9.63 million folks aged 14 to 30 within the nation, representing 25.7% of the inhabitants.
The SQB mortgage is a part of two EBRD tasks price as much as $100 million (€85.4 million) in Uzbekistan’s monetary sector. The as much as $50 million (€42.7 million) separate enterprise with Uzbekistan’s mortgage refinancing firm is geared toward supporting the mortgage market and extra standardized lending practices.
In accordance with the State Statistical Committee of Uzbekistan, the mortgage was made in an financial zone the place small and medium-sized enterprises accounted for 51.5% of GDP from January to September 2025 and had 1.2 million small and medium-sized enterprises working as of October 1, 2025.
Accessible liquidity misses small companies
For Francis Marij, Managing Director and Head of the Monetary Establishments Enterprise Group on the EBRD, the central situation isn’t just the provision of funds, however the place they go.
“Liquidity is actually ample,” he informed Euronews. “What we’re seeing is a whole lot of that goes into authorities loans and nationwide borrowing, however not essentially into financing the actual financial system.”
SQB’s lending facility is designed to handle that hole by concentrating on younger companies that usually wrestle to fulfill banks’ lending standards.
Bankability stays the first check
For a lot of small companies, the primary barrier is not the enterprise concept itself. It is whether or not an organization can present data, monetary plans, and working historical past that lenders use to evaluate threat.
Mariju mentioned many small and medium-sized enterprises face structural mismatches with the banking system.
“They do not speak to banks the best way banks anticipate them to,” he mentioned.
He associated the discrepancy to the best way small companies doc their enterprise. They usually have fewer monetary forecasts, much less formalized monetary planning, and fewer transparency of knowledge than bigger firms. He additionally mentioned banks want to position larger emphasis on the credibility of founders, administration groups and enterprise plans when lending to small and medium-sized enterprises.
For girls entrepreneurs, the dearth of funds can start even earlier than they apply for a mortgage. Entry to credit score might also rely in your capability to seek out the knowledge, networks, and help providers that can allow you to really use the out there packages.
Seren Guben Güres, Director of the UN Ladies Liaison Workplace for Central Asia, mentioned Uzbekistan has made important progress in gender equality reforms, together with help packages for girls entrepreneurs. However she mentioned adjustments in legal guidelines and insurance policies don’t robotically result in equal entry.
“Are they conscious of their rights? Are they conscious of those providers?” she mentioned.
Collateral stays the driving power behind lending selections
When companies contact their banks, the subsequent check is usually safety. Many younger entrepreneurs and first-time enterprise homeowners might not but have the property or tools wanted to use for a mortgage.
“Many banks require collateral or fastened property, however fairly often small companies haven’t got collateral or fastened property that may really help them borrowing from a financial institution,” Marij mentioned.
The problem additionally extends to how banks set up small enterprise loans.
“Many banks view small enterprise lending as a downgraded model of company lending, and that is not the way it needs to be,” he mentioned.
The EBRD says it’s working with each debtors and lenders by way of technical help, coaching and risk-sharing devices comparable to first loss protection, which may also help banks lend to prospects who lack conventional collateral.
Ladies entrepreneurs want help past credit score.
For girls enterprise homeowners, entry to finance additionally relies on circumstances past the banking system. Güres mentioned societal expectations, gender stereotypes and caregiving duties can restrict ladies’s capability to construct companies, be a part of networks and benefit from out there providers.
“We have to return to the basis causes, together with dangerous social norms and gender stereotypes, and the burden of care on ladies,” she says.
She mentioned help packages comparable to mentoring, tailor-made help, grants and loans have to proceed even after ladies begin or formally launch their companies to assist them increase past the primary stage.
