President Shavkat Mirziyoyev signed a decree on November 10, outlining measures to enhance support for businesses in Uzbekistan. The decree, now published in the Lex.uz database, addresses resource challenges faced by medium-sized enterprises and introduces alternative financial instruments, including equity financing and service mortgages.
Under the decree, the State Fund for Support of Entrepreneurship will be transformed into the Entrepreneurship Development Company. The Ministry of Economy and Finance will remain its founder. The Entrepreneurship Development Company will gain autonomy to implement comprehensive support tools for SMEs and raise funds on local and foreign capital markets, including from international financial organizations.
One of the key responsibilities of the Entrepreneurship Development Company will be to promote industry and regional projects that focus on job creation and support initiatives of self-employed individuals. Additionally, the company will facilitate innovation activities and champion the implementation of green and energy-saving solutions.
For the period of 2023-2024, the authorized capital of the Entrepreneurship Development Company is set at UZS 300bn (over $24mn), with plans to attract $100mn in resources for business lending.
The support programs are scheduled to launch on March 1, 2023, offering equity participation and service mortgage options for production and service projects of medium-sized businesses. These assistance types will be available on a competitive basis, with eligibility criteria including at least two years of operation and a permanent staff of at least 50 people.
Small and medium-sized businesses will also have access to loan guarantees up to UZS 5bn (around $408,000), potentially higher with intermediary agreements. Additionally, from 2024 to 2026, the Entrepreneurship Development Company plans to compensate part of the interest payments on loans in national currency up to 5 billion soums. The compensations are contingent on meeting employment and revenue growth targets.
To fund these initiatives, the company will receive UZS 600bn (around $49mn) from the state budget before July 1 and an equivalent amount until the end of 2024.
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