TASHKENT, Uzbekistan, September 5. A Business Development Bank will be established in Uzbekistan, to provide further support for local small businesses, Trend reports.
Business Development Bank was established on the basis of the joint-stock commercial Qishloq Qurilish Bank and the following were formed under it:
- Limited Liability Company "Small Business Development Fund"
- 14 small business assistance centers in the regions.
Business Development Bank will provide loans for up to 7 years for small business projects. For business entities with a positive credit and tax history, the requirement for collateral is reduced by 50 percent.
Moreover, implementation of "140 advanced industrial enterprises" program is planned in the near future. Credit funds are allocated in foreign currency at a rate of 4 percent per annum in national currency at a rate of 10 percent per annum for up to 10 years to finance projects of business entities included in this program.
In case of compensation (refund) of a negative amount of value added tax (VAT), the practice of applying the tax gap coefficient (tax gap) is prohibited. Also, the procedure for suspending the validity of a special VAT registration certificate has been cancelled.
Meanwhile, the maximum income of business entities paying monthly advance payments on income tax has been increased from 5 billion soums ($412,000) to 10 billion soums ($824,000).
Earlier this year, National Bank of Uzbekistan and Standard Chartered, a British multinational bank, have concluded an agreement to attract a credit line in the amount of $100 million. The credit line from Standard Chartered is being directed towards financing investment projects in small and medium-sized businesses in sectors such as alternative energy, electrical engineering, textiles, transportation, telecommunications, and others.