SQB Bank will receive loans of up to $25 million to support youth entrepreneurship.
Micro, small and medium enterprises (MSMEs) in Uzbekistan led by young entrepreneurs will have greater opportunities to grow thanks to a US$25 million (€21.9 million) loan from the European Bank for Reconstruction and Development (EBRD) to SQB, the country’s second largest financial institution.
This loan is provided under the EBRD’s Youth in Business programme in Central Asia for on-lending to MSMEs led by individuals aged 35 and under.
SQB will use the funds to expand its range of financial products and attract young entrepreneurs in Uzbekistan. Young business leaders are especially important in Central Asia’s most populous country, where youth make up 27% of the population.
Eligible borrowers will also be able to take advantage of the training, advisory services and networking opportunities offered by the Bank through the Advice for Small Businesses program.
A recent EBRD market assessment in Central Asia shows that while many young people in the region have an entrepreneurial mindset, very few have access to the same economic opportunities as older people. Indeed, only around 10 per cent have access to the necessary training and skills.
To date, the Bank has invested almost EUR 5.6 billion in Uzbekistan through 174 projects, most of which are aimed at supporting private entrepreneurship.
