By Anton Usov

The European Bank for Reconstruction and Development (EBRD) is increasing its support to small and medium-sized enterprises in Uzbekistan in partnership with its long-term financial intermediary Hamkorbank. The two institutions are financially contributing to the development of dairy sector in the Khorezm region responsible for the production of nearly 10 per cent of the national milk output.

Hamkorbank is lending up to €0.5 million(US$596,875.00) to Tillo Domor, an Urgench based popular producer of dairy products, while 65 per cent of the risk on the loan will be shared by the EBRD under a risk-sharing framework.  With this transaction, the Bank’s exposure to the company through risk-sharing products has now reached €1.5 million since 2019.

The loan is supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme financed by the Global Environmental Facility Trust Fund. A grant of US$106,200 will cover energy efficiency measures designed to cut the annual consumption of water by 6,500 cubic metres and help reduce annual CO2 emissions by 368 tonnes though natural gas savings.

Tillo Domor is a well-established operation in Urgench, where the EBRD has just opened its third office in the country. Its products have popular appeal across Uzbekistan because of its geographical origin firmly associated with the ancient state of Khorezm, one the world’s most ancient civilisations.

The project benefited from advisory services financed by the European Union and by the Small Business Impact Fund (whose donors are Italy, Japan, South Korea, Luxemburg, Sweden, Switzerland, Taipei China and the USA).

To date, the EBRD has invested over €2 billion through 92 projects in the economy of Uzbekistan.