UNDP efforts towards microfinance UNDP efforts towards microfinance development in Uzbekistandevelopment in Uzbekistan

9-11 November 2005

Almaty, Kazakhstan

BUILDING SUSTAINABLE MICROFINANCE IN RBECBUILDING SUSTAINABLE MICROFINANCE IN RBEC

Community of Practice WorkshopCommunity of Practice Workshop

  

Uzbekistan

UNDP introducing microfinance in UNDP introducing microfinance in Uzbekistan Uzbekistan

In In 1998 1998 first pilot micro-credit schemes were launched in first pilot micro-credit schemes were launched in Karakalpakstan and Kashkadarya regionsKarakalpakstan and Kashkadarya regions

UNDP established three pilot microfinance projects with Kashkadarya UNDP established three pilot microfinance projects with Kashkadarya region and Karakalpakstan branch offices of Business Women’s region and Karakalpakstan branch offices of Business Women’s Association and specialized Association and specialized NGO NGO “Daulet”, provided initial loan funds “Daulet”, provided initial loan funds ($116,000), training and technical assistance for capacity building($116,000), training and technical assistance for capacity building

Consolidated performance indicators as of 30 Sept 2005:Consolidated performance indicators as of 30 Sept 2005:

Policy level: Development of enabling regulatory framework for non-Policy level: Development of enabling regulatory framework for non-banking microcredit operations (Resolution #309) banking microcredit operations (Resolution #309)

Active loan portfolioActive loan portfolio $476,000$476,000

Outreach (number of active clients)Outreach (number of active clients) 4,4164,416

Value of cumulative disbursementsValue of cumulative disbursements $4,532,000$4,532,000

Cumulative number of disbursed loansCumulative number of disbursed loans 46,92546,925

Client poverty level (Ave outstanding balance per client)Client poverty level (Ave outstanding balance per client) $108$108

Ave. loan balance as % of GDP per capita*Ave. loan balance as % of GDP per capita* 6.1%6.1%

Lessons learnedLessons learned

A wide range of national institutions are required A wide range of national institutions are required Coordination of efforts among donors, MFIs & Government Coordination of efforts among donors, MFIs & Government

bodies is a necessity bodies is a necessity Microfinancing is to be in line with Government’s Microfinancing is to be in line with Government’s

macroeconomic strategy macroeconomic strategy From operational to strategic vision in MFIs management From operational to strategic vision in MFIs management Lack of awareness and access to informationLack of awareness and access to information Challenges in expanding the geographical outreach of MF Challenges in expanding the geographical outreach of MF

services to the distant regions of Uzbekistanservices to the distant regions of Uzbekistan

Meeting the challenges of MF development during Meeting the challenges of MF development during the International Year of Microcredit, 2005 the International Year of Microcredit, 2005

Joining the Joining the qualityquality efforts of all key stakeholders efforts of all key stakeholders National Committee established National Committee established Study tour of rural microfinance organizations Study tour of rural microfinance organizations Conference of MFIs in CEE and NIS in Bucharest, RomaniaConference of MFIs in CEE and NIS in Bucharest, Romania

Building a strong legislative baseBuilding a strong legislative base acknowledging microfinance as acknowledging microfinance as an efficient tool in implementation of the Government reformsan efficient tool in implementation of the Government reforms:: sociological survey of microfinance sectorsociological survey of microfinance sector;; comprehensive national report on Microfinance development in comprehensive national report on Microfinance development in

UzbekistanUzbekistan;; Promoting legal reforms - draft Resolution of the Cabinet of Promoting legal reforms - draft Resolution of the Cabinet of

Ministers “On measures for further development of microfinance in Ministers “On measures for further development of microfinance in Uzbekistan”Uzbekistan”;;

Law on “Microcredits and microcredit organizations” developed and Law on “Microcredits and microcredit organizations” developed and being currently considered in the Parliament being currently considered in the Parliament

Increasing access to information:Increasing access to information: launch of launch of www.microfinance.uzwww.microfinance.uz national web portal, national web portal,

conducting on-line forums on essential issues of MFconducting on-line forums on essential issues of MF Development of Policy briefs - concise analytical summaries for Development of Policy briefs - concise analytical summaries for

policy decision makers, development stakeholders, donor policy decision makers, development stakeholders, donor community representatives and otherscommunity representatives and others

Diversifying MF services:Diversifying MF services: Piloting innovative microfinance projects with ‘Shakhrisabz’ Piloting innovative microfinance projects with ‘Shakhrisabz’

Business Incubator, Kashkadarya region & micro-leasing Business Incubator, Kashkadarya region & micro-leasing project with ‘Angor’ Business Incubator, Surkhandarya region project with ‘Angor’ Business Incubator, Surkhandarya region

Meeting the challenges of MF development during Meeting the challenges of MF development during the International Year of Microcredit, 2005the International Year of Microcredit, 2005

To be continued…. toward achieving poverty reduction To be continued…. toward achieving poverty reduction

and efficient mechanisms of financial mediationand efficient mechanisms of financial mediation Building institutional capacity of MFIs:Building institutional capacity of MFIs:

Trainings for MFIs (Manual on MF)Trainings for MFIs (Manual on MF) Introduction of new MF servicesIntroduction of new MF services Providing wider access to external financial resources Providing wider access to external financial resources

MF as a tool toward enhancement of living standards:MF as a tool toward enhancement of living standards: PRSPPRSP Agriculture sector reformAgriculture sector reform Micro and small business developmentMicro and small business development

=> Area based development in the=> Area based development in the most poor regions of most poor regions of UzbekistanUzbekistan

Thank youThank you!!For additional information please visitFor additional information please visit: :

www.microfinance.uzwww.microfinance.uz

UzbekistanUzbekistan