Tashkent, Uzbekistan (UzDaily.com) — The Ministry of Economy and Finance of Uzbekistan and the German Development Bank (KfW) have signed a new package of financial agreements as part of the third phase of the ongoing program aimed at supporting micro, small, and medium-sized enterprises (MSMEs).

The documents were signed by Ilkhom Norkulov, First Deputy Minister of Economy and Finance of Uzbekistan, Jonas Rathfelder, Regional Manager for Eastern Europe, the Caucasus, and Central Asia at KfW, and Dr. Andreas Schneider, Director of the KfW Regional Office for Central Asia.

Under the agreements, the total funding volume will amount to €26.5 million, of which €23.5 million will be provided as a loan, and €3 million will be in the form of a grant. The grant funds will be used for consultancy services aimed at improving the effectiveness and sustainability of the program's implementation.

The primary goal of the initiative is to expand MSMEs' access to long-term financing, including for women-led enterprises, and to strengthen the capacity of local financial institutions involved in supporting entrepreneurship. At least half of all sub-loans are planned to be directed to companies operating in rural areas outside Tashkent, which will help level the playing field for access to financial resources and foster balanced regional development.

The program also includes a series of consultancy activities aimed at achieving sustainable outcomes. Key tasks include enhancing the skills of financial institution staff in MSME lending and risk management, as well as supporting entrepreneurs in improving their financial literacy, business skills, efficiency, and competitiveness.

The new phase of the program builds on the successful experience of previous stages, during which €26.8 million in loan funding and €3 million for consultancy services were provided.

Thus, KfW continues to deepen its strategic partnership with Uzbekistan, contributing to the country's sustainable economic development and the creation of a more inclusive, resilient, and sustainable economy.