Banks of Uzbekistan to increase lending to small business
Uzbekistan, Tashkent, March 6 /Trend D.Azizov/
The commercial banks of Uzbekistan allocated 4.5 trillion soum in the state program approved by the government of the state program Year of the Family to support small businesses and family businesses in 2012, Central Bank of the Republic said on Tuesday.
The total volume of micro-credit planned in the amount of 843 billion soums. Concessional loans to finance business plans of graduates of professional colleges amounted 28.3 billion soum.
Concessional loan in the amount of 68 billion soum is planned to allocate for business support of young families. More than 365 billion soum will be allocated for women entrepreneurs in the development of family businesses and workmanship.
Allocation of credit resources worth over 40 billion soum to finance projects involving the introduction of high technologies and innovations, as well as micro firms, farmer and farms that are in remote and inaccessible areas where there is surplus labor is planned from the concessional lending to commercial banks, formed by contributions from net profit as planned.
The construction of one hundred 48 apartment building at the expense of the banks is planned in order in view of social protection for young families, particularly in providing them with housing. Housing mortgage loans for 15 years at an interest rate not exceeding the Central Bank refinancing rate (12 per cent at present) will be provided for young families.
A special program Consumer loans for young families has also been developed to improve the welfare of young families.
Consumer loans will be provided by commercial banks in the amount of 200 times of the minimum wage for up to three years at a reduced interest rate for the purchase of durable goods of domestic production.
Currently the minimum wage in Uzbekistan is 62.92 thousand soum per month.
As previously reported, President Islam Karimov approved the state program "Year of the Family" in late February, which was adopted in order to strengthen and develop the institution of the family as the foundation of society. Some 4.4 trillion soum and more than $370 million from all sources are planned to direct to the implementation of the program in 2012.
About 60 percent of the funds accounts for state funds, 25 percent - loans of commercial banks, about 15 percent - own funds of the principal investigators. More than $360 million is planned to receive from international financial institutions and donor countries.
According to the regulator of the banking system of Uzbekistan, in 2011, commercial banks have allocated 4.04 trillion soum to the republic to support small business and entrepreneurship and micro-credit amounted to 752 billion soum, which is 1.5 times higher than in 2010.
The banking system of Uzbekistan is currently represented by 30 banks, including three state banks, five - with the participation of foreign capital, 12 - joint-stock and 10 - private banks.
As previously reported, the total assets of commercial banks amounted to 27.45 trillion soum in 2011, increase by 32.4 percent compared to the totals in 2010. Loan portfolio of banks in the republic increases by 35.6 percent - up to 15.65 trillion soum.
Official exchange rate on March 6 is 1832.19 soum / $1