FINANCIAL CAPACITY OF SMES IN UZBEKISTAN: THE IMPACT OF STATE CREDIT GUARANTEES

Abstract

This article analyzes the development status and financial capacity of small and medium-sized enterprises (SMEs) in Uzbekistan, with particular attention to the role of state credit guarantees as a risk-sharing instrument that expands access to bank finance. Using publicly available quantitative evidence for 2018–2025, we summarize (i) SME credit dynamics (outstanding loans) and (ii) guarantee-related support indicators and policy parameters, and then benchmark Uzbekistan’s approach against the U.S. SBA 7(a) guarantee model and EU portfolio guarantees (COSME/InvestEU via the EIF). Evidence indicates that SME lending in Uzbekistan expanded strongly through 2023 (nominal UZS), while guarantee schemes operated both as broad-based policy tools (national fund support) and as targeted facilities (e.g., rural guarantees in IFI programs). Cross-country comparison suggests that Uzbekistan’s key challenge is not the existence of guarantee instruments, but scaling them with transparent reporting, portfolio-level risk management, and additionality evaluation, consistent with advanced practices in the EU and U.S.