EBRD provides $50 million to boost lending for young entrepreneurs in Uzbekistan

The European Bank for Reconstruction and Development (EBRD) is extending up to $50 million (€42.7 million) to Uzbekistan’s O’zsanoatqurilishbank, known as SQB, to increase lending to young entrepreneurs. The loan is part of the EBRD’s Youth in Business programme for Central Asia, targeting micro, small and medium-sized enterprises led or owned by people under 35.

Uzbekistan has 9.63 million people aged 14 to 30, constituting 25.7% of the population, according to official data. The SQB loan is one of two EBRD operations totalling up to $100 million (€85.4 million) in the country’s financial sector. The other $50 million operation goes to the Mortgage Refinancing Company of Uzbekistan to support the residential mortgage market and standardised lending practices.

Small businesses accounted for 51.5% of GDP between January and September 2025, with 1.2 million active small entities as of 1 October 2025, reports the National Statistics Committee.

Francis Malige, EBRD Managing Director and Head of the Financial Institutions Business Group, told Euronews that liquidity is abundant but often flows to sovereign lending rather than the real economy. The SQB credit line aims to address this gap by targeting young firms that struggle to meet traditional bank requirements.

Many small enterprises face a structural mismatch with banks, lacking formal financial planning and transparency. According to Malige, banks need to place more weight on the credibility of founders and business plans rather than treating SME lending as a “downgraded version of corporate lending.”

Collateral remains a major obstacle, as young entrepreneurs often lack fixed assets. The EBRD uses technical assistance, training and risk-sharing instruments like first-loss cover to facilitate lending.

For women entrepreneurs, additional barriers include social norms, gender stereotypes and care responsibilities. Ceren Güven Güres, Head of UN Women Central Asia Liaison Office, noted that legal reforms do not automatically translate into equal access; support programmes must address root causes and continue beyond business formalisation with mentoring and tailored assistance.