Uzbekistan introduces soft loans for small businesses, agricultural sector

Business Materials 17 July 2018 10:53 (UTC +04:00)

Baku, Azerbaijan, July 17

By Fikret Dolukhanov – Trend:

Uzbekistan will start providing soft loans to small businesses, family businesses, and farming enterprises, the decree of the president of Uzbekistan read.

Microcredits will be provided in amount up to 500 times of the minimum wage (92.1 million soums) for a period of up to three years, with a grace period of up to 6 months, at an interest rate of 50 percent of the refinancing rate of the Central Bank, including a commercial bank’s margin of 50 percent from the rate of allocated credit.

At the same time, microcredits can be allocated without collateral to unemployed persons registered in employment promotion centers, to citizens who have returned from labor migration, to women in difficult life situations, to members of low-income families and other socially vulnerable layers of population in amount not exceeding 100 times of the minimum wage.

Microcredits will be allocated to small business entities, farmers, family businesses for organization of greenhouses, purchase of seeds, seedlings, livestock and poultry, agricultural implements and tools, irrigation devices (pumps, artesian wells, etc.) in order to develop production in personal subsidiary farms.

The allocated credits will also be used to purchase modern mini equipment and raw materials for processing, storing and packing agricultural products, producing construction materials, food and non-food consumer goods.

It is expected that lending will help in creation and equipping of enterprises in the sphere of services, especially household, repair, educational, medical, information-communication and other demanded types of services, as well as in development of home-based work, especially among women, in rural areas.


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