Tashkent, Uzbekistan (UzDaily.com) — The Asian Development Bank (ADB) has approved a loan in the national currency, equivalent to US$30 million, to support the development of Uzbekistan’s mortgage market.

The funds will be used to expand inclusive financing for eco-friendly home renovations and housing loans, improving living conditions and increasing energy efficiency in the country's residential sector.

This project marks the first private (non-sovereign) financing transaction by ADB for the Mortgage Refinancing Company of Uzbekistan (MRCU). The initiative supports MRCU’s transition from government financing to a more sustainable market mechanism, which will help create a competitive mortgage market.

"ADB aims to expand access to housing loans in the country, with a focus on youth and women," said Kanokpan Lao-Ariya, Director of ADB’s permanent representative office in Uzbekistan. She added that more affordable mortgage lending can improve homeownership, enhance living conditions, and strengthen the financial stability of households.

Access to mortgage loans in Uzbekistan remains limited. In the first half of 2024, only 21% of real estate transactions were financed through mortgages, due to high interest rates, a lack of long-term funding in the national currency, and the absence of individual loan products. Women and young borrowers face additional barriers, including lack of collateral, lower incomes, and gender stereotypes.

The project aims to expand coverage for underserved groups, particularly women and youth, by providing loans for eco-friendly home renovations and housing. It also includes educational campaigns to improve financial literacy among women.

The growing demand for housing is also stimulating the development of the construction sector, creating new jobs and increasing economic activity. Energy-efficient homes will reduce energy consumption and greenhouse gas emissions, benefiting the environment.

In 2025, the partnership between ADB and Uzbekistan will celebrate 30 years. Since the country joined the bank in 1995, ADB has provided Uzbekistan with US$14.3 billion in loans, grants, and technical assistance.