IFC Helps Expand Financing for Uzbekistan’s Small Businesses under First Investment through the Catalytic First Loss Guarantee

Tashkent, Uzbekistan, July 20, 2026 - IFC is providing the first ever investment under the Catalytic First Loss Guarantee (CFLG) Program to Ipak Yuli Bank, a long-standing parter of IFC in Uzbekistan, to support eligible micro, small, and medium-sized enterprises (MSMEs), specifically microenterprises, climate-related businesses, and women-owned enterprises. This landmark transaction will provide financial backing for an MSME loan portfolio of approximately $100 million equivalent in local currency.

The CFLG is an innovative program, delivered as part of IFC's $4 billion MSME Platform, that enables IFC to provide first-loss coverage to partner financial institutions leveraging blended finance through the IDA Private Sector Window (IDA PSW). The two-tranche risk-sharing arrangement comprises a first loss coverage of $9 million backed by a 100 percent counter-guarantee from the IDA-20 PSW and a senior tranche coverage of $9 million to Ipak Yuli Bank. IFC's maximum exposure of $18 million is expected to mobilize $82 million in total lending for MSMEs.

MSMEs contribute more than 50 percent of Uzbekistan's gross domestic product yet face significant financing constraints. The sector's unmet credit demand is estimated at approximately $10.5 billion, limiting the ability of small businesses to expand, invest, and create jobs.

"We are proud to be the first bank in Uzbekistan to participate in IFC's Catalytic First Loss Guarantee Program. This innovative guarantee will help us expand lending to MSMEs with limited access to finance, particularly microenterprises and women-owned businesses, while also increasing financing for climate-related projects. Together with IFC, we look forward to supporting more entrepreneurs and advancing inclusive economic growth in Uzbekistan," said Umidjon Khakimov, Chairman of the Management Board of Ipak Yuli Bank.

The investment builds on IFC's partnership with Ipak Yuli Bank, which began in 2018. Since then, IFC has provided $87 million in financing to the bank, including a $67 million syndicated loan, to support small enterprises, women-owned businesses, and micro and smaller firms engaged in trade.

"Our partnership with Ipak Yuli Bank advances IFC's commitment to sustainable and inclusive growth across Uzbekistan. By catalyzing private capital toward microenterprises, women entrepreneurs, and green businesses beyond the capital, IFC aims to close the financing gap, foster entrepreneurship, and support the country's transition to a more resilient economy." said Momina Aijazuddin, IFC Regional Industry Director for the Financial Institutions Group, Middle East and Central Asia.

In addition to financing, IFC will provide strategic advisory support to Ipak Yuli Bank. This assistance will focus on helping the bank enhance its products and services to better meet the needs of MSME clients and drive sustainable growth.

About Ipak Yuli Bank

Founded in 1990, Ipak Yuli Joint Stock Innovation Commercial Bank is a universal commercial bank in Uzbekistan. It offers a wide range of banking services to small businesses, entrepreneurs, and retail customers through a well-established network of 17 branches, 47 express centers and 27 special cash desks across eight regions of Uzbekistan.

About the IDA Private Sector Window

The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's vision to create a world free of poverty on a livable planet, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw.