IFC Launches $100 Million SME Lending Drive in Uzbekistan

The program utilizes $18 million in risk-sharing coverage to mitigate potential losses, a move designed to incentivize Ipak Yuli Bank to expand its lending portfolio. By providing $9 million in first-loss protection and an equal amount in senior tranche coverage, the IFC aims to mobilize approximately $82 million in additional capital. This structure addresses a significant domestic gap, as the country’s unmet demand for small business credit is currently estimated at $10.5 billion.

Umidjon Khakimov, Chairman of the Management Board at Ipak Yuli Bank, noted that the guarantee serves as a critical mechanism for reaching underserved entrepreneurs. Beyond the financial injection, the IFC will provide advisory services to refine the bank’s product offerings, aiming to bolster the effectiveness of these loans across the region. This collaboration builds on a six-year relationship between the two institutions, which has previously funneled $87 million into local trade and entrepreneurship initiatives.