Tashkent, Uzbekistan (UzDaily.com) -- The European Bank for Reconstruction and Development (EBRD) is increasing its support for small and medium-sized enterprises in Uzbekistan together with its long-term financial intermediary, Hamkorbank. The two institutions will help to finance the development of the dairy sector in Khorezm region, responsible for the production of nearly 10 per cent of national milk output.

Hamkorbank is lending up to €0.5 million to Tillo Domor, an Urgench-based popular producer of dairy products, while 65 per cent of the risk on the loan will be shared by the EBRD under its Risk Sharing Facility. With this transaction, the Bank’s exposure to the company through risk-sharing products totals €1.5 million since 2019.

The loan is supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme, financed by the Global Environmental Facility Trust Fund. The grant of US$ 106,200 will cover energy efficiency measures designed to cut annual water consumption by 6,500 cubic metres and help reduce annual CO2 emissions by 368 tonnes through natural gas savings. 

Tillo Domor is a well-established operation in Urgench, where the EBRD has recently opened its third office in Uzbekistan. The company’s products have popular appeal across the country because of their geographical origin in the ancient state of Khorezm, one the world’s oldest civilisations.

The project benefited from advisory services financed by the European Union and the Small Business Impact Fund (whose donors are Italy, Japan, the Republic of Korea, Luxembourg, Norway, Sweden, Switzerland, Taipei China and the United States of America).

To date, the EBRD has invested €2.4 billion through 97 projects in the economy of Uzbekistan.