| First microcredit loan by EU/UNDP in Mingbulok district of Namangan region in the Fergana Valley |
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| Tuesday, 23 December 2008 10:35 |
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Thanks to the joint efforts of the
European Union and the United Nations Development Programme,
dehqan/farmers and micro-entrepreneurs receive their first microcredit
loan in Mingbulok district of Namangan region in the Fergana Valley.
 On February 09, 2006 in Jomashuy town in
Mingbulok district, Ms Usmonova Tursunoy, Mr. Baratov Abdurashid, Mr.
Urishov Hayrullo and Mr. Honazarov Anvarjon were the first peer group
of livestock business people from Mehnatobod mahalla to receive
micro-loans from ELS project by EU/UNDP. The loans disbursed by the
local microfinance organization A/V FVRM (FV-Mard) in a total amount of
1,257 USD will help the peer group members to expand their business and
increase their family income. Tursunoy, Abdurashid, Hayrullo and
Anvarjon are united by one common ambition: contribute to the well
being of their families and their community. The individual loans
ranging from US$ 251-335 each will support livestock breeding. In rural
areas such as Mehnatobod, livestock is not only a source of income, but
also the only saving alternative for people who have limited access to
traditional banking system. Thanks to the support provided by the EU/UNDP project “Enhancement of Living Standards in Namangan region”
in collaboration with NGO ACDI/VOCA dehqan farmers and
micro-entrepreneurs of Mingbulok district have a chance to access
microfinance resources easily and a possibility to improve their
livelihood This district is located in the northern part of Namangan
region and people’s living standards here tend to be low if compared to
other districts.
 FV-Mard has been
implementing microfinance projects since March 2002 beginning in the
city of Andijan and expanding its activities through all the Fergana
Valley of Uzbekistan. FV-Mard launched its microfinance programme in
Namangan by opening its office in March, 2005. In December, 2005 after
signing a Memorandum of Agreement with the ELS project in a total
amount of $ 151,467 USD (approximately 177 mln. Uzbek sums), FV-Mard
expanded its activity in the rural areas of Namangan such as in
Mingbulak and Chartak districts. Ms Nazira Vahobova, a native of
Mingbulok, has recently become FV Mard’s new loan officer for
Mingbulok. She has received a special training to support the new
microfinance programme. Together with a representative of the Mahalla
Fund, she has already visited a number of communities who work with the
ELS in the rehabilitation of social infrastructures. They have informed
people on what microcredits are and how to obtain a loan from FV-Mard. Mehnatobod, a community of approximately 3,359 people living
mainly from agriculture and livestock was particularly interested.
During various meetings with Nazira and the ELS project team, the
community stressed that lack of cash and collaterals are one of the
main reasons for the community’s low living standards. People thought
that the scarcity of credit made it difficult for individual
enterprises and small business people to access necessary start-up
capital. Credit for small-scale businesses that are easily available
when and where needed can do a lot to stimulating entrepreneurship and
contributing to economic growth at regional and local level. The
community agreed that microcredit was one of the most effective ways to
improve incomes and people’s lives. FV Mard founded by ACDI/VOCA and financed by USAID is a private,
nonprofit organization that promotes broad-based economic growth and
the development of civil society. For more information please see www.els.uz and http://www.acdivoca.org |
News and Events First microcredit loan by EU/UNDP in Mingbulok district of Namangan region in the Fergana Valley