(MENAFN- Trend News Agency) TASHKENT, Uzbekistan, July 25. The potential
factoring volume in Uzbekistan may reach up to $1.9 billion,
trend reports.
As the Asian Development Bank (ADB) pointed out, Uzbekistan's
GDP in 2022 stood at $80.4 billion. At the same time, if the
factoring volume in the country was to reach a penetration rate of
2.4 percent, which is the average observed in neighboring
countries, the potential factoring volume could amount to
approximately $1.9 billion.
Factoring in Uzbekistan is regulated under the Civil Code, which
serves as a foundation for the initial development of the market.
However, the existing legislation requires significant enhancements
to align with international practices, the bank noted.
The European Bank for Reconstruction and Development (EBRD) and
the International Finance Corporation (IFC) are collaborating with
the Government of Uzbekistan to establish an appropriate enabling
framework. Additionally, the Asian Development Bank (ADB) has
conducted training sessions for banks on Supply Chain Finance (SCF)
to bridge the knowledge gap.
In April 2022, new financial sector policies and reforms were
implemented, allowing both banks and nonbank credit institutions,
including microfinance entities, to offer factoring services.
Furthermore, the introduction of the 2011 law on credit
information sharing has facilitated the establishment of the first
local private credit bureau in Uzbekistan.
In 2022, ADB committed 5 new public sector projects and programs
for just over $1 billion to Uzbekistan. To date, ADB has committed
240 public sector loans, grants, and technical assistance totaling
$11.5 billion to Uzbekistan. Cumulative loan disbursements to
Uzbekistan amount to $7.69 billion.
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