AKIPRESS.COM - The European Bank for Reconstruction and Development (EBRD) is providing a US$ 40 million loan to UzPromstroybank (UzPSB) for on-lending to Uzbekistan’s growing private sector.

Despite its increasing importance, access to finance remains a key challenge for the private sector in Uzbekistan, which generates around 50 per cent of the country's GDP. The situation has deteriorated as a consequence of the coronavirus pandemic

The EBRD financing will support the growth and expansion of the operations of small and medium-sized businesses in the country.

UzPSB is the country’s oldest lender. The EBRD credit line will help the bank to grow and diversify its client base and target firms in regions outside the capital. The funds are part of the EBRD’s response to the coronavirus pandemic and its economic impact.

With a network of 45 branches and 170 outlets across Uzbekistan, UzPromstroybank is well placed to provide much-needed financial resources to small businesses all over the country.

The funds from by the EBRD will also contribute to the further commercialisation, greater efficiency and competitiveness of the financial institution. These essential improvements, together with best international banking practices, which the EBRD will bring to UzPromstroybank’s operations, will be part of the pre-privatisation support provided by the EBRD in agreement with the authorities of Uzbekistan. Once implemented, they will help transform UzPSB into a modern, profitable and competitive financial institution.

To date, the EBRD has invested €1.85 billion through 79 projects in Uzbekistan’s economy.