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Uzbekistan and South Korea to cooperate in small business sphere

Business Materials 27 February 2014 18:52
Foundation support for exports of small businesses and private entrepreneurship in Uzbekistan (EPF) and the Korea International Trade Association (KITA)

Tashkent, Uzbekistan, Feb.27

By Demir Azizov- Trend:

Foundation support for exports of small businesses and private entrepreneurship in Uzbekistan (EPF) and the Korea International Trade Association (KITA) signed a memorandum of understanding to facilitate the establishment of business cooperation between entrepreneurs of Uzbekistan and South Korea on Feb. 27.

The document was signed by the Acting Director of EPF, Zhakhongir Mustafayev and the Vice president KITA Ang Hyun-ho, on the basis of the Uzbek- Korean business forum held in Tashkent.

Foundation support for exports of small businesses and private entrepreneurship under the National Bank for foreign economic activity (FEA) of Uzbekistan was founded in August, 2013.

The initial size of the fund is defined as 5 billion soums, out of which 2.5 billion soums is formed by a contribution from the state budget, and the remaining part by voluntary contributions of founders of small businesses and private entrepreneurship, NBU FEA, the Chamber of Commerce and as well as other commercial banks, financial institutions and donors.

The main objectives of the fund are defined gratuitous financial assistance to small businesses and private entrepreneurship, farmers for the development of export-oriented production of local brands, promoting exports, including licensing fees, permits, certificates, as well as registration fees and other payments related to the participation of small businesses and entrepreneurship in international tenders.

The fund will be exempt from all taxes, levies, duties and mandatory contributions to state funds, except for the single social payment until January 1, 2019.

Small businesses have the right to implement export of goods and services in foreign currency without advance payment through the fund, opening of letter of credit or guarantee with the term of receipt of proceeds, or re-importation within 180 days with a policy of export insurance contract issued in due course.

Today the fund has contributed to 120 local companies in promoting their products for export amounting to $38.7 million dollars.

The fund plans to invest $ 580 million for support of exports of 370 small businesses in Uzbekistan in 2014.

The official exchange rate for Feb. 27 is 2229.71 soums / $ 1.

Translated by S.I.
Edited by C.N.

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