PROJECT FINANCING CHALLENGES AND OPPORTUNITIES IN FINANCIAL INSTITUTIONS

Abstract

This paper explores the challenges and opportunities associated with project financing in Uzbekistan's financial institutions. As Uzbekistan undergoes significant economic transformation, the need for robust project financing mechanisms has become increasingly critical to support infrastructure development and industrial growth. The study identifies key challenges, including limited access to long-term capital, high-risk perceptions, regulatory complexities, and underdeveloped capital markets, which hinder the effectiveness of banks in financing large-scale projects. Despite these obstacles, several growth opportunities are emerging, such as government initiatives promoting public-private partnerships, collaboration with international financial institutions, and the potential expansion of Islamic finance. By examining both the challenges and opportunities, this paper aims to provide valuable insights into enhancing project financing practices in Uzbekistan’s banking sector, ultimately contributing to the country's development goals.