Uzbekistan Allocates $11.6 Bn for SMEs with Lower Rates

Uzbek entrepreneurs will be able to access more loans for business development this year. A total of 140 trln soums ($11.6 bn), has been allocated for small and medium-sized enterprises (SMEs), President Shavkat Mirziyoyev said.

The president noted that loan interest rates are currently the same across all regions at 17.5%.

«But conditions and opportunities differ greatly between districts. That is why loans are issued at 12% in 37 ‘difficult’ districts,» he said.

The maximum amount of a concessional loan for family businesses will increase by 1.5 times to 50 mln soums ($4,135). Loans of up to 100 mln soums ($8,270), will be available for purchasing imported goods and certified pedigree livestock. Entrepreneurs can borrow up to 150 mln soums ($12,400), to open a mini-hotel or to buy freezers or equipment for storage and processing.

For businesses in border and enclave areas, loan limits will rise to 1 bn soums ($82,700). An additional 2 trln soums ($165 mln), has been allocated for this purpose on top of the already planned 3.6 trln soums ($298 mln).

In addition, banks will provide 17 trln soums ($1.4 bn), to deepen district specialisation. Of this, 4% of loans will be directed towards production and 6% towards processing.

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