MANILA, Nov. 10 (Xinhua) -- The Asian Development Bank (ADB) and Uzbekistan's Sanoat Qurilish Bank (SQB) on Friday signed a senior convertible loan of 50 million U.S. dollars to support Uzbekistan's privatization of state-owned banks, which will strengthen the banking sector and contribute to economic growth and job creation.

The Manila-based bank said the International Finance Corporation and the European Bank for Reconstruction and Development are parallel lenders.

The ADB said the loan proceeds will help SQB expand its financing to underserved micro, small, and medium-sized enterprises (MSMEs). Portfolio diversification will contribute to SQB's transition into a fully universal commercial bank by serving a broader customer segment.

The ADB added that it will also provide technical assistance to help SQB implement its transformation roadmap.

In 2017, Uzbekistan embarked on an ambitious market reform agenda, including the privatization of more than 100 state-owned banks.

MSMEs play a significant role in Uzbekistan's economy, comprising the majority of registered businesses and employing 74 percent of the workforce. However, access to financing remains a challenge, with only 13 percent of the sector having access to commercial loans, the bank said.

Founded in 1922, SQB is one of Uzbekistan's oldest banks and the second-largest state-owned bank. Enditem

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