Alokabank: The Bank of Choice for Young People

President Shavkat Mirziyoyev of Uzbekistan has signed three important documents aimed at supporting youth entrepreneurship, including the transformation of Alokabank into a financial organisation specifically for young people, as reported by Press Office of the President.

The President announced this package of documents during a meeting with youth. Alokabank will allocate $200 mln to support youth projects.

The bank will provide loans of up to 5 bn soums to young individual entrepreneurs, requiring them to hire at least 20 peers. Entrepreneurs who open training centers and small businesses will also be eligible for preferential loans.

The bank will offer soft microloans of up to 100 mln soums for self-employed youth, repayable over seven years. At least 30% of the bank’s loans will be dedicated to women’s entrepreneurship.

For instance, the Youth Entrepreneurship Development Fund was established under the Agency for Youth Affairs and has been allocated $100 million. This fund can provide preferential loans of up to 2.5 billion soums, while start-up projects can seek investments of up to 2 billion soums.

The third document focuses on job creation for young people, with the Central Bank receiving $100 mln. The regulator, the Ministry of Higher Education and the Chamber of Commerce and Industry will initiate services to support projects led by university graduates.

Furthermore, a commission will be formed to address graduates’ employment, including khokims (governors), heads of banks, and business leaders.

Kursiv Uzbekistan also reports that there are plans to train the youth of Uzbekistan to work abroad.