Project Description
On January 14, 2026, the Multilateral Investment Guarantee Agency (MIGA) signed a Trade Finance Guarantee Framework Terms of up to USD50.2 million with ODDO BHF SE (ODDO) of Germany, covering its short-term trade loan facility to Microcreditbank (MKB) in Uzbekistan.
The MIGA-covered facility would be used to provide short-term loans for trade-related payments, aimed at mainly supporting the trade activities of micro, small and medium-sized enterprises (MSMEs). The tenor of underlying trade transactions will be up to one year.
Environmental Categorization
The MIGA-covered facility will support short-term trade transactions. These transactions pose minimal environmental and social (E&S) risks and impacts and as such, the Guaranteed Transaction has been categorized as ‘FI-3’ in accordance with MIGA’s Policy on Environmental and Social Sustainability (2013). The applicable E&S requirements for this Guaranteed Transaction are the MIGA Exclusion List and applicable E&S laws in Uzbekistan. MKB will be responsible for screening the underlying transactions against the MIGA Exclusion List and applicable E&S laws. MKB will also be required to comply with the labor standards set forth in MIGA Performance Standard 2: Labor and Working Conditions.
Development Impact
The Guaranteed Transaction is expected to increase access to trade finance in the country, especially for MSMEs, and contribute to the country’s national strategy, Uzbekistan 2030, under its objectives of supporting the growth and development of MSMEs. Access to trade finance remains a constraint in Uzbekistan. Challenges faced by enterprises in Uzbekistan include limited access to alternative financing, insufficient financial literacy and business skills, and lack of sufficient export credit support. The Guaranteed Transaction, which will unlock new liquidity for trade finance transactions, is expected to help close existing gaps and address these challenges.
The Guaranteed Transaction is aligned with the World Bank Group (WBG) Country Partnership Framework (CPF) for Uzbekistan (FY22-FY26) High Level Outcome 1, Objective 1.1: Expand competitive access to market, and the Objective 1.2: Enable private sector growth and investment which addresses inclusive and competitive market-led growth, as it is expected to facilitate trade finance activities in the country and increase access to trade finance to underserves segments in the economy such as MSMEs and women-owned businesses.
