The Asian Development Bank (ADB) has approved a Uzbek soum denominated loan worth up to $30 million to support the development of the mortgage market in Uzbekistan and expand inclusive financing for green renovations and housing loans, the ADB press service said.
The Inclusive Mortgage Market Development Project is ADB’s first private (non-sovereign) financing transaction for the Mortgage Refinancing Company of Uzbekistan (MRCU).
This initiative supports MRIU’s transition from public financing to more sustainable market financing.
“ADB is committed to expanding access to mortgages in Uzbekistan, with a special focus on youth and women,” said Kanokpan Lao-Araya, ADB Country Director for Uzbekistan. “Easier access to mortgages can significantly increase home ownership, improve living conditions, and enhance the financial stability of households. This also facilitates a more inclusive housing market and contributes to overall economic growth and social well-being.”
ADB underscored that people in Uzbekistan had limited access to mortgages: in the first half of 2024, only 21% of real estate sales were financed by mortgages due to high interest rates, a lack of tailored products, and insufficient long-term financing in local currency.
Women and young borrowers face additional barriers, such as lack of collateral, lower incomes, limited financial knowledge, and gender stereotypes.
The project will expand services to underserved segments of the population and promote women’s economic empowerment by increasing women’s and youth’s access to loans for green renovations and housing.
It will also expand outreach to women through awareness-raising campaigns and knowledge products that are expected to improve understanding of women’s financial needs.
Higher demand for housing stimulates the construction industry, creating jobs and increasing economic activity, leading to a multiplier effect.
“More energy-efficient housing will reduce energy consumption and greenhouse gas emissions, and society will benefit from reduced impacts of climate change,” the ADB emphasized.
