Baku, Azerbaijan, May 25
By Fakhri Vakilov – Trend:
The enterprises of Uzbekistan will be able to receive subsidies for compensation of up to 50 percent of the cost of transporting products for export by rail, Trend reports citing Uza.uz news agency.
The introduction of an appropriate mechanism is provided by a presidential decree.
However, this measure of support will not be applied when exporting products to neighboring countries.
The Agency for Export Promotion under the Ministry of Investment and Foreign Trade has been appointed the authorized body for the payment of subsidies from the state budget.
The head of state also instructed the Ministry of Transport, together with the Anti-Monopoly Committee, to review the tariffs of UzAirways and Uzbekistan Railways for the carriage of export cargoes in a month.
In addition, the State Fund for the Support of Business Development will provide compensation to exporters, with which they can cover interest expenses on pre-export loans of commercial banks, including loans issued to replenish working capital, up to the Central Bank refinancing rate, but not more than 10 percentage points on loans in the national currency. Another compensation will be in the amount of 40 percent of the rate set by commercial banks, but not more than 4 percentage points for loans in foreign currency.
Moreover, exporters must provide guarantees for loans from commercial banks in the amount of up to 50 percent of the amount of the pre-export credit that do not exceed four billion soums.
For these purposes, the Ministry of Finance will allocate up to 50 billion soums to the Fund in 2019-2020.
The President also instructed the Association of Banks of Uzbekistan, together with commercial banks, to expand the types of financing of exporting enterprises, including through the provision of loans to replenish working capital.
The Agency for Export Promotion has been instructed to develop and submit for approval to the Cabinet of Ministers a mechanism for providing financial assistance to exporting organizations within two months.
It should provide for the payment of part of the cost of obtaining the necessary licenses, permits, and certificates in other countries, as well as registration fees and other fees associated with the participation of business entities in international tenders and competitions.
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