Tashkent, Uzbekistan (UzDaily.com) -- On 27 October, President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On additional measures to reduce the burden on business entities associated with the fulfillment of credit obligations in foreign currency.”

The resolution notes that in order to reduce the currency risks of business entities, loans of up to US$1 million, allocated in foreign currency, are converted into national currency by commercial banks.

When transferring loans received from commercial banks in foreign currency into national currency, the State Fund for the Support of Entrepreneurship provides compensation to cover interest costs in the part that exceeds the basic rate of the Central Bank, but not more than 5 percentage points, loans to business entities that have valid contracts on the provision of compensation not exceeding the equivalent of US$1 million, and an interest rate not exceeding 1.75 times the size of the Central Bank’s base rate.

At the same time, the fund is allowed to recalculate the current amount of compensation for these loans and proportionally change their total amount.

From 1 November 2021, loans attracted at the expense of international financial institutions and foreign government financial organizations on behalf of the Republic of Uzbekistan in foreign currency in order to finance entrepreneurial projects will be refinanced to financial organizations participating in projects for a period of at least 10 years or for the period of their attraction.