Microsoft Word Microfinance development in Uzbekistan Eng doc

Table 2. Consolidated table of MFO clientele structure 
Total 
as MFO clients 
Microfirms 259,300 
155,600 

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Entrepreneurs without the status of legal 
entity 
4,689,300 1,808,400 
Dekhkan farms 
4,500,000 
981,600 
Unemployed 597,000 
287,000 
Poor population groups 
1,915,000 
1,915,000 
Labor migrants 
1,000,000 
480,000 
TOTAL 12,960,600 
5,627,600 
Source: Author’s calculations 
Thus, the number of potential MFO clients among businesses is estimated to be 
1,964,000. These are operating subjects that can produce demand for microfinancing 
services. The clientele base from the least protected groups of the population is 2,682,000.
The size of clientele base of the most social sector in Uzbekistan, agriculture, is 981,600.
In general, 2.7 million people from the least protected sections of the population are 
ready potentially to launch their own business, which amounts to approximately 27% of 
domestic labor force. 
 
Total estimated demand for microfinance resources 
For this calculation, two cost estimates of demand for microfinancing services were 
calculated
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:
1. Cost estimate of the demand based on current amount of loan equivalent of $146. This 
estimate makes up 914.2 billion soums ($ 821.6 million).
2. Cost estimate of the demand based on loan amount equivalent to $500. According to the 
results of sociological poll, right now about half of MFO clients wanted to receive this 
very size of microloans. In this case, cost estimate makes up 3,131.1 billion soums ($ 
2,813.8 million). 
Short-term outlook: the first cost estimate 
The aggregate current demand for financial resources in Uzbekistan is about 914.2 
billion soums. It is a rather significant sum, which is equal to 5.8% of the forecasted level of 
Uzbekistan’s GDP in 2005. At present a total of all financial institutions operating in the 
country meet only 9.2% of the current demand.
As of the beginning of May 2005, non-government non-commercial microfinance 
organizations (NGO-MFO) have issued microcredits in the amount of 4.2 billion soums ($3.9 
million) that amounts to only 0.5% of current demand or 0.04% of GDP in 2004. 
After adopting legislative measures proposed in the report to encourage the 
development of microfinance organizations (MFO), it is planned to increase the credit 
portfolio of MFOs up to 15.5 billion soums, or 0.1% of GDP by the end of 2005. In order to 
achieve this goal, based on the average number of clients per MFO currently equal to 2,000 
people, 21-22 new microfinance organizations must be established. Thus, the total number of 
MFOs should reach 35-36 organizations.