According to FMO website,this loan is given to JSICB Ipak Yuli Bank (“IYB”) of Uzbekistanwith for the 4 years period. The loan will be used to finance a combination of women, youth, agriculture Micro and SME customers of IYB, which contribute to FMO's Reducing Inequalities target. In addition, the loan will partially be used to finance Green projects, supporting FMO's Climate Action target.
Uzbekistan is one of the poorer countries in the region with ~15% of the population living below the poverty line (down from 30% in 2001), of which 75% live in rural areas, where agriculture is the main industry.The loan meets the United Nations Sustainable Development Goals 5, 8, 10 and 13 by supporting women and young (agricultural) MSME entrepreneurs, with access to finance and by addressing climate action. Furthermore, this loan provides IYB with stable long term funding, which indirectly contributes to supporting job creation, job maintenance and economic growth.
Environmental and social rationale
Low risk, C-category. IYB has a well-functioning ESMS. No exposure to IFC PS triggered transactions, no exclusion list exposure, limited high risk E&S exposure, no project finance and an overall low average loan size.