November 24, 2023

Financial support will be provided to small and medium-sized businesses

10.11.2023 Presidential Decree No. 193 “On measures to improve the financial support system for small and medium-sized businesses” was adopted.

In accordance with the document, the “Entrepreneurship Development Company” is transformed into a joint-stock company.

From March 1, 2024, the Company will provide support to business entities:

(i) medium-sized businesses on projects of production and provision of services:

– contributing to the charter fund of the initiators in the form of real estate, equipment, and other forms of a share in the amount of 15 percent of the cost of projects, but not exceeding 20% or 3 billion soums of the charter fund;

– acquisition of property in the amount of 70% of real estate and equipment, but not exceeding 10 billion soums, and its transfer to the initiator on the basis of mortgage services with the condition of accrual of annual interest on the balance of the debt at a rate exceeding the main rate of the Central Bank by 4 percentage points, for up to seven years or payment in installments;

– (ii) small and medium-sized enterprises on projects:

– placement of financial resources in national and foreign currency in commercial banks, microfinance, and leasing organizations for the allocation of loans (leasing);

– provision of guarantees with a total value not exceeding 5 billion soums on loans, leases, bank guarantees, and letters of credit provided in national and foreign currency by commercial banks, microfinance, and leasing organizations;

– provision of sureties (portfolio sureties) on loans within the limit, the total amount, and conditions established on the basis of intermediary agreements on the use of the Company’s funds concluded with commercial banks;

– provision compensation to small businesses in 2024-2026 in the amount of up to 40% of the Central Bank’s basic rate for a period of no more than 3 years on loans of up to 5 billion soums allocated in national currency at a rate exceeding the basic rate by 4 percentage points and not exceeding 1.75 times the basic rate.