Tashkent, Uzbekistan (UzDaily.com) — In the first half of 2025, credit institutions in Uzbekistan provided factoring services totaling 4 trillion soums, of which 3.7 trillion soums, or 93 percent, were accounted for by commercial banks, while 289 billion soums, or 7 percent, came from microfinance institutions, according to the Central Bank of Uzbekistan.

Of this amount, 2.3 trillion soums, or 58 percent, consisted of digital factoring services, with 1.2 trillion soums (52 percent) carried out via the electronic platform Finmakon and 1.1 trillion soums (48 percent) through the platform Ozplanet.

Driven by the growing demand among businesses for working capital through factoring, a record high of 630 billion soums in factoring services was recorded in December 2024. Following the Presidential Decree of August 12, 2024, No. PF–109, credit institutions extended factoring services worth a total of 5.2 trillion soums to entrepreneurs over the last four months of 2024 and the January–June 2025 period.

In the first six months of 2025, state-owned commercial banks, with government stakes in their charter capital, provided 2.2 trillion soums worth of factoring services (58 percent) to business entities, while private banks accounted for 1.5 trillion soums (42 percent).

The largest share of factoring operations was carried out by banks with state participation. Asaka Bank led with 758 billion soums (including 508 billion soums via electronic platforms), followed by Uzsanoatqurilishbank with 479 billion soums (465 billion soums via digital channels) and Uzmilliybank with 373 billion soums (277 billion soums). Among private banks, the leaders were Kapitalbank with 722 billion soums (31 billion soums digital), Hamkorbank with 336 billion soums (246 billion soums), and Asia Alliance Bank with 135 billion soums (85 billion soums).

Microfinance institutions financed receivables worth 289 billion soums during this period.

Efforts are currently underway to diversify financial services available to entrepreneurs, introduce a wider range of modern banking products, and expand the use of factoring as an alternative solution for short-term financing by commercial banks.

As a result, the share of factoring in short-term financing rose from 1 percent in July 2024 to 6.1 percent in December, and from 4.5 percent to 14 percent during January–June 2025.

Regionally, the largest share of factoring services in the first half of this year was provided in Tashkent, amounting to 1.5 trillion soums (37.5 percent), followed by Andijan region with 1.2 trillion soums (28.9 percent), Tashkent region with 312 billion soums (7.7 percent), and Fergana region with 277 billion soums (6.9 percent). The lowest figures were recorded in Syrdarya region with 17.3 billion soums (0.4 percent), Surkhandarya region with 14.7 billion soums (0.4 percent), and Jizzakh region with 12.8 billion soums (0.3 percent).

By organizational and legal form of clients, limited liability companies received the largest share of factoring services — 2.5 trillion soums, or 61 percent. Joint-stock companies accounted for 1.2 trillion soums (28.7 percent). Enterprises with foreign capital received 352 billion soums (8.7 percent), while private and family-owned enterprises and farms received 64 billion soums (1.6 percent).

By maturity, 32 percent of factoring services (1.3 trillion soums) were provided for up to 30 days, 18 percent (0.7 trillion soums) for 31–60 days, 32 percent (1.3 trillion soums) for 61–90 days, 11 percent (0.4 trillion soums) for 91–120 days, and 7 percent (0.3 trillion soums) for 121–180 days.

By transaction size, 1 percent of factoring services (30 billion soums) involved deals worth up to 100 million soums, 10 percent (400 billion soums) for deals from 100 million to 500 million soums, 7 percent (300 billion soums) for 500 million to 1 billion soums, 38 percent (1.5 trillion soums) for 1 billion to 5 billion soums, and 44 percent (1.8 trillion soums) for deals exceeding 5 billion soums.

By sector of the economy, the majority of factoring services went to industry — 2.2 trillion soums (54 percent) — and trade and services — 1.5 trillion soums (38 percent). In construction and agriculture, receivables were financed in the amounts of 168 billion soums (4 percent) and 170 billion soums (4 percent), respectively.

To expand the provision of modern financial services to exporters and promote factoring, 22 commercial banks developed international factoring products. In January–June this year, commercial banks provided exporters with international factoring services with recourse amounting to 52 billion soums, equivalent to US$4 million and 9.9 million Russian rubles.

In addition, as part of the development of international factoring, local commercial banks signed agency agreements with Asia-Invest Bank for the provision of agency services. As of the reporting date, Asia-Invest Bank, together with the National Bank of Uzbekistan, Asaka Bank, Turonbank, Agrobank, Uzsanoatqurilishbank, People’s Bank, Ziraat Bank, Hamkorbank, Asia Alliance Bank, Ipoteka Bank, Trustbank, Kapitalbank, and Invest Finans Bank, carried out international factoring services equivalent to 491.6 billion soums.

Under these agency agreements, international factoring services were provided amounting to US$38.2 million, Russian rubles 33.5 million, and 0.7 million Chinese yuans.