Microsoft Word Microfinance development in Uzbekistan Eng doc

Panel 1. Comparative indicators of microfinance trends
Europe and Central Asia (September 2001) Central Asia (December 2002) 
• Loans in the total amount of USD 800 
million have been provided; 
• The portfolio of microfinance services is 
increasing by 54% annually; 
• Number of users of services is increasing by 
30% annually; 
• 1.7 million borrowers; 
• 2.4 million depositors; 
• Total amount of deposits – USD 674 million 
• Loans in the total amount of USD 200 
million have been provided; 
• The portfolio of microfinance services is 
increasing by 40% annually; 
• Number of users of services is increasing 
by 20-30% annually; 
• 200,000 borrowers; 
• No mobilization of savings except for 
funds of mandatory insurance. 
Source: CGAP 2003 
 
Microfinance facilitates the sustainable development of small businesses and the 
expansion of individual entrepreneurship. Thanks to its accessibility, microfinance is 
increasing the involvement of the population in small businesses by increasing access to 
financing and it facilitates the evolution of microbusinesses into medium business. As a rule, 
microfinance results in an increase in the welfare of the population, a reduction in social 
inequality, new opportunities for self-realization, and the creation of a developed group of 
proprietors. The greater the flexibility and receptivity of MFIs to innovations in the market 
of financial services, the higher the quality of services provided.

---

10
As a new financial institution, microfinance contributes to the enhancement and 
growth of the financial system as a whole, and it facilitates growth and diversification in the 
savings and loan markets. Microfinance is regarded as a mechanism for establishing a credit 
history for subsequent bank loans. The issues of cost recovery and financial stability of 
MFIs is under special focus as microfinance may be and often is a business bearing revenue 
for the founders and ensuring the employment of borrowers. 
Microfinance is particularly effective as an instrument to increase employment and 
combat poverty. Access to financial services increases the opportunities for people to realize 
their entrepreneurial potential. Microfinance is also a means to enhance the transparency of 
the economy and business: practice has shown that MFIs’ development reduces the informal 
credit sector, and the receipt of financial services enhances the transparency of the recipient.