Uzbekistan 2009: Microfinance Analysis and Benchmarking Report

This report analyzes and presents a benchmarking report of Uzbekistan's microfinance sector for 2009.Portfolio yield of Uzbek MFIs was double that of peers in Central Asia and Uzbek MFIs exhibited greater productivity in 2009. The report states that:

• Uzbekistan has a large unmet demand for microcredit due to the importance of small businesses in the economy;
• MFIs' growth and sustainability are limited by a restrictive regulatory environment;
• Encouraging trends include passing of new laws, improvement of the regulatory base and growth in number of providers;
• Adoption of laws on microfinance inspired continuous founding of new for-profit microcredit organizations;
• Provision of microfinance was concentrated in the capital city and nearby regions;
• Depth of outreach was similar to that of peers in Central Asia, despite Uzbek MFIs offering lowest loan balances.

Finally, MFI number, outreach and loan portfolio has decreased since 2006 due to funding scarcity, although donors and international financial institutions are showing increased interest in the microfinance sector.