Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Figure 4.18: Commercial Bank Loans to Small Businesses, 
Uzbekistan, 2017–2018

---

Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
162
Given that the limitations of bank lending for SMEs are exacerbated by the 
Basel III-based tighter risk management in the banking sector, the nonbank 
finance industry needs to be more competitive to diversify financing options 
for SMEs. At present, microcredit organizations are not a major source of 
funding for small businesses. As of Q3 2018, financing from microcredit 
organizations amounted to SUM247 billion ($30.6 million) for 55,476 
borrowers (Figure 4.19a). The ratio of gross nonperforming loans to total 
loans was low at 0.4% in the same period, but annual lending rates were 
high: 60.6% for individuals and 26.5% for legal entities (Figure 4.19b). Thus, 
less than 5% of the microcredit organizations’ lending portfolio covered 
small businesses.
NPL = nonperforming loan.
Note: Data collected on forms specially designed by the author.
Source: Data received from the Central Bank of Uzbekistan on 2 October 2018.
Figure 4.19: Microcredit Organizations, Uzbekistan, 2004–2018
a. Financing Outstanding and Borrowers
b. Lending Rates and Nonperforming Loans (%)
SUM billion
Number ‘000
Lending rate (%)
Nonperforming loans (%)
Financing outstanding, total
Number of borrowers, total
Gross NPL/total loan (right)
Lending rate for legal entities (left)
Lending rate for individual (left)
0
10
20
30
40
50
60
70
80
90
0
50
100
150
200
250
300
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Q3
2018
0.0
0.2
0.4
0.6
0.8
0
20
40
60
80
2015
2016
2017
Q3 2018

---