Tashkent, Uzbekistan, September 15, 2023—IFC is providing a $10 million loan to Ipak Yuli Bank in Uzbekistan to support the bank's lending to small and medium enterprises (SMEs), including women-owned SMEs, and promote inclusive economic growth.
IFC's financing will enable Ipak Yuli Bank, which has a strong presence and extensive experience in serving SMEs, to expand its lending portfolio and provide much-needed financing to smaller businesses. They play a crucial role in driving economic development and job creation in Uzbekistan. The funds will also specifically target women-owned SMEs to promote gender equality and women's economic empowerment.
"We are grateful for IFC's support in expanding our lending activities to SMEs and women-owned SMEs especially," said Saidabror Saydakhmedov, Chairman of the Management Board of Ipak Yuli Bank. "This loan will enable us to provide the necessary financial resources and support to these businesses, helping them grow, create jobs, and contribute to the overall development of Uzbekistan."
IFC's loan to Ipak Yuli Bank aligns with its commitment to promote sustainable and inclusive economic growth in Uzbekistan. By supporting SMEs and women entrepreneurs, IFC aims to foster entrepreneurship, enhance productivity, and reduce poverty in the country.
"Smaller businesses are the engine of economic growth, but too many—especially women-owned smaller businesses—struggle to access financing," said Wiebke Schloemer, IFC Director for Türkiye and Central Asia. "Our investment with Ipak Yuli Bank aims to address that gap - fostering inclusive economic growth and helping to empower women entrepreneurs."
The investment represents a continuation of IFC's relationship with Ipak Yuli Bank, which dates back to 2018. Since then, IFC has provided the bank with a $25 million in financing to support SMEs, including those owned by women and micro and smaller businesses engaged in trade.
The financing is being provided under IFC's Base of the Pyramid Program, an extension to the Fast-Track COVID Facility launched in 2021. It helps financial services providers deliver funding to smaller, informal enterprises and low-income households to recover from the impact of the COVID-19 pandemic.
About Ipak Yuli Bank
Founded in 1990, Ipak Yuli Joint Stock Innovation Commercial Bank is the universal commercial bank in Uzbekistan. It provides a wide range of banking services to small businesses and private entrepreneurship, as well as retail customers through a well-established 17-branch network and 46 express centers across eight regions of Uzbekistan.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw.
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