TASHKENT, Uzbekistan, September 18. Uzbekistan will launch a comprehensive program, providing $1.7 billion for development and support for small businesses, on October 1, 2023, Trend reports.
Uzbekistan’s Business Development Bank, established earlier this month, has been designated to be responsible for the implementation and improvement of the project. Enterprises will be allocated preferential loans, including up to 100 million Uzbek soums ($8,825) without collateral.
By the end of 2026, it is planned to allocate a total of 6 trillion soums ($493 million) from the state budget for the implementation of the program, as well as 14.6 trillion soums ($1.2 billion) from international financial institutions.
The list of potential participants includes:
Self-employed and artisan businesses, as well as rural farms and small enterprises with 3 or more permanent employees (with at least 1 year of experience),
Individuals and legal entities with successful family entrepreneurship projects and a positive credit history
Participants will be able to receive loans of up to 1.5 billion soums ($123,382) on preferential terms for the purpose of organizing or expanding businesses, replenishing working capital, or leasing fixed assets. It is planned to allocate loans for amounts up to 100 million soums ($8,225) without collateral and up to 150 million soums ($12,338) with a 50 percent reduction in the collateral requirement.
Earlier this month, the International Finance Corporation (IFC) also agreed to provide a loan in the amount of $10 million to Uzbekistan’s Ipak Yuli Bank to support lending to small-scale business enterprises. IFC investments will allow Ipak Yuli Bank to increase its loan portfolio and provide much-needed financing to the country’s small enterprises.
