Central Bank of Iran allocates $800 million in new loans for small and medium businesses
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Tehran Times
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Central Bank of Iran allocates $800 million in new loans for small and medium businesses

The Iranian Minister of Industry, Mining, and Trade, Seyed Mohammad Atabak, announced on Saturday that the Central Bank of Iran (CBI) commits to providing an additional 400 trillion rials, equivalent to $800 million, in loans to small and medium-sized enterprises (SMEs).

Speaking at a meeting with entrepreneurs and business representatives in Ardabil province, Atabak noted that the support package introduced in December 2025 was initially intended to assist SMEs. However, according to assessments conducted, a significant portion of these loans was directed to large companies.

In response, the Central Bank of Iran decided to allocate an additional 400 trillion rials exclusively for small and medium-sized businesses. Furthermore, the minister drew attention to the country's foreign currency restrictions, which have affected certain trade policies.

He emphasized that stimulating producers to increase exports and implementing appropriate incentives would help increase foreign currency revenues. He also warned that export restrictions could undermine supply volumes and foreign exchange earnings.

The minister stressed the importance of repatriating export revenues, noting that some exporters have not returned the foreign currency they received to the country.

Discussion on inflation and production costs

Regarding the rise in production costs, Atabak stated that the gap between consumer and producer inflation has widened. According to data presented at the meeting, consumer inflation reached 83 percent, while producer inflation reached 117 percent.

He warned that further increases in production costs could reduce the competitiveness of domestic production, leading to decreased output and job losses. Moreover, he added that further inflationary pressure could ultimately be passed on to consumers.

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Uzbekistan presents plan to support small and medium-sized businesses for the period 2026–2030
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uzdaily.uz

Uzbekistan presents plan to support small and medium-sized businesses for the period 2026–2030

The Central Bank of Uzbekistan has developed a Concept for supporting small and medium-sized enterprises (SMEs) for the period from 2026 to 2030. This document includes 25 interconnected initiatives aimed at expanding access to financing and strengthening the business sector.

According to a statement from the Central Bank of Uzbekistan, one of the main goals is to double the SME loan portfolio from the current 218 trillion UZS to 2030, as well as increase the share of loans for small and medium-sized businesses in GDP from 12% to 20%.

The Concept aims to create an SME financing system by 2030 based on market principles, competition, and digital data. This system is designed to improve entrepreneurs' access to financial resources while maintaining financial and price stability. The document was approved in pilot mode and will be reviewed annually based on achieved results and market changes.

The strategy is built around three main objectives: sustainable business growth, equal access to financing, and financial system stability. Financing must correspond to each company's stage of development, helping micro-businesses transition into small enterprises, and small businesses into medium-sized companies.

Access to financing should be determined by the business's economic viability, not by the owner's location, gender, or age, or the availability of collateral. Furthermore, credit expansion must occur while banks comply with prudential requirements.

Goals and indicators for 2030

The Concept also sets several other targets for 2030. It is expected that the share of state financial institutions in SME lending will decrease from 73% to 65%, or to 55% if one of the large state banks is privatized. The share of non-bank credit organizations in total lending should increase from 1.7% to 5%.

The proportion of SMEs with access to reliable credit information should increase from 68% to 80%. Online microloans should account for 60% of all microcredit lending, and the average time for issuing such loans should be reduced to one hour. The Central Bank also plans to expand access to financial services for companies without a credit history.

According to the regulator, the implementation of the concept will benefit three groups: entrepreneurs, the financial system, and state programs.

Entrepreneurs will gain access to a wider range of financial products and funding sources, as well as simplified lending procedures and more transparent financial services. Special attention will be paid to entrepreneurs with limited credit history or insufficient traditional collateral, as well as companies operating in regions.

The financial system is expected to experience stronger competition between banks and non-bank financial institutions, improved risk assessment, and reduced costs for lending and monitoring. The Concept also provides for the introduction of more effective systems for early detection of potentially problematic loans.

State programs will benefit from more targeted resource allocation based on a unified database, coordinated monitoring, and common efficiency criteria.

Structure of initiatives

Of the 25 planned initiatives, 17 concern institutional measures, five relate to financial infrastructure, and three involve financial product development. Institutional measures have been prioritized in terms of implementation timelines, as they are intended to create the necessary legal framework for transitioning infrastructural and product initiatives from pilot mode.

One of the institutional initiatives includes the transformation of the Business Development Bank. The plan envisages consolidating SME long-term financing, mobilizing resources from international financial institutions, and distributing targeted financing through financial intermediaries within a unified system.

Regardless of the chosen model, the institution will be subject to prudential regulation and supervision under the same general rules as other financial institutions. Commercial operations and state support measures will be considered separately, and the amount of subsidies will be disclosed.

The Concept also proposes establishing a financial ombudsman to resolve disputes between financial institutions and businesses outside of judicial bodies. The ombudsman's mandate should cover not only consumers but also micro and small enterprises.

Legislative changes are planned to allow banks to provide accounting, tax, legal, and consulting services. According to the document, a significant portion of loan rejections for micro and small enterprises is related not to a lack of economic viability but to poorly prepared applications.

Another initiative focuses on creating a methodological basis for Islamic finance, covering regulation, accounting, risk management, and supervision. Licensing will begin with pilot banks, including Islamic windows in existing banks, before being extended to a larger number of institutions.

The Concept also provides for measures to ensure tax neutrality and eliminate double taxation of transactions involving successive transfers of ownership rights.

The role of microfinance organizations in business financing is also expected to grow. Resources from the Apex Fund will be allocated to these organizations through competitive selection based on transparent criteria, including portfolio quality, risk management systems, and rural coverage.

Additionally, guarantee products will be developed to enable microfinance institutions to obtain loans from commercial banks.

Institutional measures also include the creation of an innovation hub as a structural unit of the Central Bank's Department for Financial Technology Development.

The regulator intends to improve interaction with businesses regarding inflation and monetary policy, and to publish quarterly analytical reports on the state of SMEs across various industries and regions. These reports will be available on the Central Bank's website.

The Central Bank also plans to use big data to model the behavior of economic agents, assess SME financing deficits, and develop support mechanisms for enterprises in specific industries.

Another proposed measure concerns collateral valuation. The price agreed upon by the parties will be used as the starting price at auction. Legislation will establish the right of parties to agree on the collateral value in writing, while the starting price will be automatically generated by the electronic auction system.

According to the document, lengthy forced collateral recovery procedures and unpredictable sale prices lead banks to apply discounts to collateral valuations, thereby reducing the volume of credit available to businesses.

To develop the currency risk hedging market, the Concept proposes creating a National Hedging Company and introducing a 'client-bank-company' model. The company will provide constant quotes for derivative financial instruments in domestic currency and money markets.

The strategy also provides for the introduction of a system of reciprocal guarantees. During the open dialogue between the President of Uzbekistan and entrepreneurs on August 18, 2026, it was announced that enterprises taking out loans up to 10 billion UZS would have to provide collateral equivalent to only 25% of the loan amount.

The Concept suggests allowing exporters selling goods through foreign trading houses, consolidation warehouses, and distribution networks to repatriate export earnings within the timeframe specified in contracts, instead of the current 180-day period. The justification for this measure will be assessed by the Ministry of Investment, Industry and Trade, the Tax Committee, the Customs Committee, the Agency for Technical Regulation, and the Central Bank.

The strategy also provides for a transition to an expanded interdepartmental regulatory sandbox operating on a 'single window' principle. A program of '2000 exporting enterprises' will be launched for small enterprises that already export products or have export potential.

Financial infrastructure and products

Five initiatives in the field of financial infrastructure aim to reduce information asymmetry in SME financing. One of them is the creation of a centralized digital platform for registering, valuing, securing, and selling collateral and non-performing assets. This platform will be integrated with banks and marketplaces via API. Restrictions on collateral registered on the platform will be automatically lifted after all obligations are met.

A post-processing and early warning system will also be created. It will monitor indicators such as the number of jobs created, revenue trends, timely tax payments, and changes in borrowers' financial status.

Open banking will be introduced in stages. First, a test mode will be launched, followed by API connections with commercial banks and payment organizations. Non-bank credit organizations will join at a later stage.

With client consent, enterprises will be able to share verified transaction information from their accounts in other banks with potential creditors.

Another initiative involves developing a credit scoring model based on alternative data, such as tax records, payment transactions, sales information, and utility payments. Borrowers will also have the right to request explanations for loan denials.

The digital marketplace of financial services for SMEs will receive a mobile version and will be expanded to include non-bank financial institutions and fintech companies. Loan terms will be disclosed along with the total cost of financing.

Three product-related initiatives concern pre-export financing, expanding the range of financial products, and developing international factoring. New products will be developed in cooperation with commercial banks, including loans with seasonal repayment schedules, revolving lines of credit for working capital, equipment and inventory financing, and products for companies without collateral.

To support international factoring, the Ministry of Investment, Industry and Trade will establish a guarantee organization under the Joint Stock Company of Trade Development. This organization will issue guarantees with recourse up to the equivalent of 10 billion UZS, provided that no more than 50% of the factoring transaction amount is covered.

Until January 1, 2029, the company will compensate 50% of the discount or accrued interest on international factoring transactions within 4% per annum. In cooperation with the National Agency for Advanced Projects, a standard insurance product with a simplified compensation procedure in case of default by a foreign debtor will also be developed.

Current state of the SME sector

The document also presents an overview of the current state of the SME sector in Uzbekistan. According to the National Statistical Committee, as of January 1, 2026, small enterprises and microfirms accounted for 403,800, or 85%, of the total 474,900 active enterprises and organizations in the country.

As of July 1, 2026, the total number of small business entities, including individual entrepreneurs, dehqan farms, and artisans, reached 1.2361 million. This figure includes 526,700 microfirms, 375,100 individual entrepreneurs, 334,400 dehqan farms, 23,200 artisans, and 5,100 family businesses.

In the first half of 2026, small businesses contributed 50.5% to GDP, generating 518.7 trillion UZS in added value. During this period, 44,000 new small enterprises and microfirms were created.

SME exports amounted to $7.48 billion, corresponding to 47.2% of the country's total exports, while imports reached $13 billion, or 51.8% of the national volume. In 2025, the sector provided employment for approximately 74% of the workforce, about 10.5 million people. However, the share of small businesses in GDP decreased from 53.8%.

Uzbekistan issued loans totaling 35.9 billion sums under the poverty reduction program
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uzdaily.uz

Uzbekistan issued loans totaling 35.9 billion sums under the poverty reduction program

As of October 1, 2026, commercial banks in Uzbekistan have provided 2,362 loans totaling 35.9 billion sums under the 'From Poverty to Prosperity' program. These funds are intended to support the population in purchasing equipment and other fixed assets, which will allow for expanding income sources, developing self-employment, and creating small production enterprises.

The largest share of financing was directed towards the purchase of sewing equipment, with 13.2 billion sums allocated for 925 sewing machines. Additionally, 7.1 billion sums went to finance 419 units of food production equipment.

The loans also covered expenses for purchasing 496 laptops worth 5.6 billion sums and 272 passenger cars amounting to 5.4 billion sums. Another 4.5 billion sums was allocated for the acquisition of 250 various fixed assets.

The leaders in lending volume were Xalq bank, which issued 1,587 loans totaling 23.6 billion sums. Mikrokreditbank provided 569 loans for a total of 8.6 billion sums, and Agrobank allocated 206 loans for 3.6 billion sums.

By region, the highest number of loans was issued in Jizzakh Region—321 loans. This was followed by Tashkent Region with 307 loans, and Syrdarya Region registered 262 loans.

The goal of this program is to stimulate entrepreneurial activity, increase household incomes, and create additional sources of earnings by helping citizens obtain the necessary equipment and assets for economic activity.

European Bank for Reconstruction and Development to provide Davr Bank with up to $25 million to support youth business
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uzdaily.uz

European Bank for Reconstruction and Development to provide Davr Bank with up to $25 million to support youth business

According to the bank's press service, the European Bank for Reconstruction and Development (EBRD) will provide Uzbek Davr Bank with a loan of up to 25 million US dollars. These funds are intended to expand financing for micro, small, and medium-sized enterprises owned or managed by young entrepreneurs.

The financing will be carried out under the EBRD's 'Youth in Business' program in Central Asia, which focuses on enterprises owned or managed by entrepreneurs under 35 years old. The loan can be offered either as synthetic financing pegged to the Uzbek sum or in US dollars.

Furthermore, at least 30% of the allocated funds will be directed towards supporting micro, small, and medium-sized enterprises led by women. Additionally, Davr Bank intends to increase lending to businesses located in rural areas of Uzbekistan.

Young Davr Bank clients who meet the program criteria can benefit from the EBRD's 'Advice for Small Businesses' initiative, which provides training, consulting support, and other non-financial services. The goal of this project is to improve young entrepreneurs' access to financing outside the capital.

The project will also help Davr Bank continue to improve its banking products and internal systems for more effective service to this client group. EBRD considers creating new jobs for the young generation with technical and digital skills a priority, given that, according to government data, over 26% of Uzbekistan's population is aged 30 or younger.

EBRD operates in Uzbekistan to support private entrepreneurship and economic development. The bank reported that its total investments in the country have reached nearly 7.3 billion US dollars across 219 projects.

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