According to the bank's press service, the European Bank for Reconstruction and Development (EBRD) will provide Uzbek Davr Bank with a loan of up to 25 million US dollars. These funds are intended to expand financing for micro, small, and medium-sized enterprises owned or managed by young entrepreneurs.
The financing will be carried out under the EBRD's 'Youth in Business' program in Central Asia, which focuses on enterprises owned or managed by entrepreneurs under 35 years old. The loan can be offered either as synthetic financing pegged to the Uzbek sum or in US dollars.
Furthermore, at least 30% of the allocated funds will be directed towards supporting micro, small, and medium-sized enterprises led by women. Additionally, Davr Bank intends to increase lending to businesses located in rural areas of Uzbekistan.
Young Davr Bank clients who meet the program criteria can benefit from the EBRD's 'Advice for Small Businesses' initiative, which provides training, consulting support, and other non-financial services. The goal of this project is to improve young entrepreneurs' access to financing outside the capital.
The project will also help Davr Bank continue to improve its banking products and internal systems for more effective service to this client group. EBRD considers creating new jobs for the young generation with technical and digital skills a priority, given that, according to government data, over 26% of Uzbekistan's population is aged 30 or younger.
EBRD operates in Uzbekistan to support private entrepreneurship and economic development. The bank reported that its total investments in the country have reached nearly 7.3 billion US dollars across 219 projects.