European Investment Bank to Provide $100-mln Loan to Uzbekistan Entrepreneurs Affected by Pandemic

Strategic Insights -

The European Investment Bank has approved a $100 million loan to support Uzbekistan's entrepreneurs affected by the Covid-19 pandemic. The loan will be provided for a period of 15 years with a 5-year grace period and will be issued by three commercial banks in the country. The loan is aimed at helping entrepreneurs recover from the economic impact of the pandemic, with a particular focus on supporting women entrepreneurs. The European Investment Bank has been operating in Uzbekistan since 2018 and has allocated 300 million euros to support various projects in the country.

Key Takeaways:

  • The European Investment Bank has approved a $100 million loan to support Uzbekistan's entrepreneurs affected by the Covid-19 pandemic.
  • The loan will be provided for a period of 15 years with a 5-year grace period.
  • The loan will be issued by three commercial banks in Uzbekistan: Uzpromstroybank, Microcreditbank, and Qishloq Qurilish Bank/Selstroybank.
  • The Agency for the Development of Entrepreneurship under Uzbekistan's Economic Development and Poverty Reduction Ministry will coordinate the project.
  • The maximum amount for each investment project is 12.5 million euros, and the total cost of the project must not exceed 25 million euros.
  • Financing is in the form of revolving loans.
  • At least 30% of the provided funds must be allocated to finance projects of women entrepreneurs.
  • The European Investment Bank has been operating in Uzbekistan since February 2018 and has allocated 300 million euros to support various projects in the country.

Statistics:

  • $100 million: the total amount of the loan approved by the European Investment Bank.
  • 15 years: the duration of the loan period.
  • 5 years: the duration of the grace period.
  • 300 million: the total amount of euros allocated by the European Investment Bank to support various projects in Uzbekistan since 2018.
  • 12.5 million: the maximum amount for each investment project.
  • 25 million: the total cost of the project.
  • 30%: the minimum percentage of funds that must be allocated to finance projects of women entrepreneurs.

Sources:

  • Interfax (Sept 6) - "European Investment Bank to provide $100-mln loan to Uzbekistan entrepreneurs affected by pandemic."