President Shavkat Mirziyoyev was briefed on proposed measures to improve the insolvency framework and support the financial recovery of businesses facing economic difficulties, with a focus on strengthening institutional mechanisms and expanding state support tools, as it was reported by presidential press service on April 3.
Current business landscape and financing plans
Authorities noted that Uzbekistan has continued efforts to support private sector development and entrepreneurship. As a result, more than 300,000 individual entrepreneurs and 5.5mn self-employed individuals are currently active. The share of private business in the economy has increased from 45% to 58% over the past five years.
In 2026, plans include allocating UZS 140 trillion (over $11.5bn) in loans to small and medium-sized enterprises, directing $8bn in external resources through banks to support entrepreneurship at the local level, and allocating UZS 20 trillion (over $1.6bn) to regions for the development of production, trade, and service infrastructure.
Challenges in insolvency and business preservation
Despite these measures, officials identified persistent issues in preserving existing enterprises and jobs. A growing number of inactive and liquidated small businesses indicates that current mechanisms are more focused on liquidation rather than recovery.
Data presented during the briefing showed that insolvency proceedings have been initiated in only 10,000 of 93,000 businesses experiencing financial deterioration. Rehabilitation mechanisms have also shown limited effectiveness, with only 7 out of 68 enterprises undergoing rehabilitation resuming operations over the past five years.
The performance of judicial administrators was also reviewed. Identified issues included missed procedural deadlines, unsupported conclusions, and insufficient mechanisms to detect fictitious bankruptcies. In addition, shortcomings in remuneration systems were noted as a factor limiting the attraction of qualified specialists.
Institutional and legal reforms
To address these challenges, several institutional reforms were proposed. These include the establishment of an Insolvency Agency under the Ministry of Justice to coordinate state policy, analyze causes of bankruptcy, and support enterprise recovery.
A Chamber of Judicial Administrators is also proposed to oversee professional standards, provide training, monitor compliance with legislation and ethics, and represent the interests of administrators.
Financial support mechanisms
New financial instruments were presented to assist businesses in financial distress. These include guarantees for small and medium-sized enterprises through the National Business Guarantee Company and access to low-interest credit lines via the Entrepreneurship Development Company.
Under the proposed measures, repayment of loan principal and interest may be deferred during rehabilitation, with subsequent repayment structured over a three-year period. Additional provisions include simplifying procedures for restructuring tax and credit obligations.
Local authorities, including district and city councils, may be granted the authority to approve tax deferrals or installment payments. Tax authorities may also apply similar mechanisms based on collateral, guarantees, or insurance arrangements.
Expansion of rehabilitation tools
Pre-trial rehabilitation measures are expected to be expanded to include creditor agreements, financial assistance, tax and loan deferrals, debt buyouts, production restructuring, and workforce retraining. These tools aim to support businesses in regaining financial stability and continuing operations.
Digitalization of insolvency procedures
A key component of the proposed reforms is the introduction of a unified electronic platform for managing insolvency cases. The platform will include registers of enterprises undergoing insolvency or rehabilitation, as well as judicial administrators, and will allow all procedures—from application to liquidation—to be conducted digitally.
The system is intended to improve transparency, enhance monitoring and control, and accelerate information exchange. Public and media access to selected data is also includes to increase openness.
The president emphasized that economic policy should prioritize not only the creation of new enterprises but also the preservation and recovery of existing businesses. Officials were instructed to revise the insolvency framework in line with international practices, improve management approaches, strengthen rehabilitation mechanisms, and implement digital solutions across the sector.
