11:16 / 16.11.2023
9951

Business Development Bank to allocate more than $1 billion to support small companies

It is planned to place Eurobonds of the Entrepreneurship Development Company worth $300 million.

Photo: Kun.uz

Government business support structures plan to place Eurobonds worth $600 million. This is stated in the presidential decree dated November 15.

The Decree “On additional measures to attract the population to small and medium-sized businesses” sets out targets for the Business Development Bank (BDB) and the Entrepreneurship Development Company (EDC) until the end of 2026.

According to available information, it is planned to issue bonds of the BDB in the amount of $300 million and the EDC in the same volume on international markets.

The BDB will also have to attract $800 million in credit resources from international institutional investors to support small businesses. Due to this, it is planned to increase the balance of loans allocated to small enterprises by 1.7 times.

Thanks to this, the share of small businesses in the loan portfolio should increase from the current 28% to 43%. Over the next three years, it is expected to organize or expand the activities of 150 thousand business entities with the participation of the BDB.

In turn, the EDC will have to provide equity financing to 150 medium-sized enterprises. Another 300 projects are expected to be sold to businesses under the “service mortgage” program.

Due to these measures, it is planned to increase the number of medium-level enterprises by 2.5 times. The total volume of financial services for small and medium-sized businesses should increase by 75% - from 8 trillion to 14 trillion soums.

The Business Development Bank was created on the basis of the Qishloq Qurilish Bank in accordance with the presidential decree of September 4. As the head of state said at a dialogue with entrepreneurs in August, the credit institution will focus on supporting commercial enterprises.

The BDB is also establishing a Small Business Development Fund with assistance centers for small businesses in all regions of Uzbekistan. As part of the program of financial and institutional support for small businesses, the authorized capital of the BDB will be increased to 3 trillion soums.

Last week, the President decided to transform the State Fund for Support of Entrepreneurship into the Entrepreneurship Development Company. It will be provided with 1.2 trillion soums from the budget, and will also attract $100 million from international organizations.

Related News
Top