MICROCAPITAL BRIEF: Uzbekistan Borrows $500m from ADB to Build 29k Rural Housing Units Mortgaged by Ipoteka Bank, National Bank of Uzbekistan, Qishloq Qurilish Bank

The Asian Development Bank (ADB), a Philippines-based multilateral institution, recently announced it will issue a loan of USD 500 million as part of an effort to build 29,000 new “affordable” houses in rural parts of nine regions of Uzbekistan. The units will reduce the number of people lacking “piped water connections and sanitary facilities in rural areas while…heating and cooking facilities with natural gas will ease the burden faced by women and enable them to avoid harmful solid fuels, which are linked to respiratory diseases.”

The Uzbek banks Ipoteka Bank, the National Bank of Uzbekistan and Qishloq Qurilish Bank will participate in financing the home-buyers. Of the mortgages established, 30 percent are slated to be written in women’s names. Details such as the pricing of the houses or loans are not available. Details such as the pricing of the houses or loans are not available. The effort follows the building of 41,500 ADB-supported units between 2012 and 2015.

Established in 1966, ADB has 67 country members, of which 48 are in the Asia-Pacific region. Its mission is to support environmentally sustainable growth and regional integration through loans, technical assistance, grants, equity investments and guarantees. During 2016, ADB invested USD 17.5 billion in projects with total budgets of USD 31.7 billion. Since becoming a member of the organization in 1995, Uzbekistan has borrowed loans totalling USD 5.7 billion from ADB.

By Sascha Strobl, Research Associate

Sources and Additional Resources:

ADB press release:
https://www.adb.org/news/adb-provide-500-million-rural-housing-uzbekistan

ADB home page:
https://www.adb.org

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