Financial support for small businesses to be expanded

It is planned that financial state support for small businesses will be expanded, follows from the draft presidential decree.

According to the project, the State Fund for supporting the development of entrepreneurial activities (established in 2017) should provide small businesses with the followings:

• guarantees of loans from commercial banks in the amount of up to 50% inclusive of the loan amount, but not more than 4 billion soums (now not more than 2 billion soums);

• compensation for interest on loans of commercial banks:

- in national currency, with an interest rate not exceeding 1.5 times the refinancing rate of the Central Bank, the amount of which does not exceed 10 billion soums (now 8 billion soums) – in part, exceeding the refinancing rate, but not more than 5 percents;

- in foreign currency, the amount of which does not exceed 10 billion soums (now 8 billion soums) in equivalent – up to 40% of the interest rate set by commercial banks, but not more than 4 percentage points.

The State Fund for supporting development of entrepreneurial activities was established in 2017. The main objective of the fund is to provide small businesses with financial support in national and foreign currencies through commercial banks.