Trade Finance Guarantee Facility (MIGA-15396)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Uzbekistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 30, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Financial Institutions to be identified; JSCB Microcreditbank
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 119.32 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 109.3
Converted using 2025-04-07 exchange rate.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Apr 14, 2025

Disclosed by Bank Apr 7, 2025

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the MIGA, this summary describes a proposed investment by financial institutions yet to be identified (the Guarantee Holders) which intend to provide short-term, revolving trade loans to Microcredit bank (MKB) in Uzbekistan (Guaranteed Transaction). The Multilateral Investment Guarantee Agency (MIGA) would provide the Guarantee Holders with up to EUR[109.3] million equivalent in trade finance guarantees against the risk of non-payment by the MKB.

The MIGA-covered facility would be used to provide short-term loans for trade-related payments, aimed at mainly supporting the trade activities of micro, small and medium-sized enterprises (MSMEs). The tenor of underlying trade transactions will be up to one year.

The Guaranteed Transaction is expected to increase access to trade finance in the country, especially for MSMEs, and contribute to the country's national strategy, Uzbekistan 2030, under its objectives of supporting the growth and development of MSMEs. Access to trade finance remains a constraint in Uzbekistan. Challenges faced by enterprises in Uzbekistan include limited access to alternative financing, insufficient financial literacy and business skills, and lack of sufficient export credit support. The Guaranteed Transaction, which will unlock new liquidity for trade finance transactions, is expected to help close existing gaps and address these challenges.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Devex, Joint-Stock Commercial Microcreditbank has been established under Decree No PF-3750 of President of Republic of Uzbekistan dated May 5, 2006 re: “Establishment of Joint-Stock Commercial Microcreditbank in order to provide for development of small businesses, private entrepreneurship and private farming, to create new individual self-employment opportunities by activating family businesses and cottage industries, especially to further enhance financing by providing access of large groups of rural population to microfinance services. 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No project contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works