Finnfund provides $15 million loan to Uzbekistan's Ipak Yuli Bank

Finnfund, a Finnish development financier, has granted a $15 million loan to Ipak Yuli Bank, a privately owned commercial bank in Uzbekistan. This funding is intended to enhance the financial services available to micro, small, and medium-sized enterprises (SMEs) and self-employed entrepreneurs within Uzbekistan.

The loan addresses a critical gap in Uzbekistan, where SMEs have faced limited access to finance, and the status of self-employed individuals has often excluded them from formal financial channels. Ipak Yuli Bank is identified as a leading institution focused on private sector financing in the region.

"We are happy to sign our first deal with Finnfund. We look forward to a long-term partnership in supporting and increasing private sector participation in the economy, improving access to finance in Uzbekistan," stated Saidabror Saydakhmedov, Chairman of the Management Board of Ipak Yuli Bank. He added that the loan will enable the bank to support a larger number of SMEs.

Jaakko Kangasniemi, Managing Director and CEO at Finnfund, commented that the development of Uzbekistan's private sector is contingent on underserved SMEs gaining access to finance. "Ipak Yuli Bank has ambitious plans to increase its lending and is well on its way in developing its services both online and offline, and we are convinced that this is exactly what the entrepreneurs need in order to develop their businesses."

Ipak Yuli Bank has been noted for its early adoption of internet and mobile banking products in Uzbekistan. The bank also emphasizes gender balance, with women holding significant positions and specific products tailored for women entrepreneurs.