Tashkent, Uzbekistan (UzDaily.com) — President Shavkat Mirziyoyev has introduced a series of initiatives aimed at enhancing business conditions in Uzbekistan, with a particular focus on supporting small and medium-sized enterprises (SMEs).

The President reported that since the beginning of the year, the Business Development Bank and the Entrepreneurship Development Company have provided microloans totaling 3.5 trillion soums to 35,000 companies. Additionally, 115,000 individuals have received 1 trillion soums through the “First Step in Business” program.

All banks and microfinance organizations will now participate in SME support programs, with an annual allocation of 10 trillion soums for these purposes.

The maximum amount for microloans is set to increase to 300 million soums, allowing businesses to meet a wider range of needs. Notably, no collateral will be required for loans up to 100 million soums.

Branch offices of the Entrepreneurship Development Company will be established in each region of Uzbekistan, where staff will identify promising business projects. Companies with high ratings and strong credit histories will be eligible for government guarantees.

Mirziyoyev highlighted that, over the past seven months, microfinance organizations have provided services amounting to 6.6 trillion soums. This figure is expected to rise to 12 trillion soums by the end of the year, with additional government support of 1 trillion soums.

Microfinance organizations will be able to offer services to entrepreneurs in foreign currencies and engage in payment activities with the appropriate licenses.

A new law is anticipated soon, permitting the establishment of microfinance banks with a minimum charter capital of 50 billion soums, with at least 70% of their loan portfolios dedicated to supporting SMEs.