15:26 / 28.09.2023

Gov’t extends grace period for loans for opening private kindergartens 

Until October 1, 2024, entrepreneurs will be able to pay only interest on these loans.

Photo: Kun.uz

A presidential decree was issued to support public-private partnerships in the field of preschool education, the legal information channel of the Ministry of Justice reported.

Entrepreneurs who received loans at reduced rates from 2018 to 2022 to open private kindergartens will be able to extend the grace period for them if they wish. Regardless of the time and conditions of issue, it will last until October 1, 2024.

Until the end of the grace period, borrowers are required to pay only interest. The portion of the principal amount due at that time will be distributed among later periods.

Preferential loans for opening private kindergartens are issued throughout Uzbekistan for a period of 10 years with a grace period of two years. Interest rates vary by location:

•  in Tashkent – 12% per annum;
•  in Nukus, regional centers and cities of regional subordination – 8% per annum;
•  in districts, small towns and mahallas – 5% per annum.

Since 2018, entrepreneurs wishing to open a private kindergarten have been provided with a number of benefits. This includes the free allocation of land or premises, for establishments created on the basis of PPP – also subsidizing expenses and tax exemption (except for social tax) for 10 years.

In turn, the entrepreneur must take on a number of social obligations. They may consist in accepting pupils from low-income families for a reduced fee or in taking patronage over a state preschool educational institution.

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