PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of November 10, 2023 No. UP-193

About measures for enhancement of system of financial support of small and medium business

In recent years in the country system work on creation of continuous chain of complex support of development of entrepreneurship is carried out.

At the same time creation of instruments of support of the medium business which is the link making the high-quality and competitive products based on new technologies and innovations of economy remains insufficient.

In the conditions of preserving in the financial market of high interest rates of resources the need for creation of new and alternative instruments of financing of entrepreneurial projects, in particular increases in implementation of entering of share into entrepreneurial projects and mortgages of services, in expansion of provision of the guarantee.

The operating form of business of the State fund of support of business activity (further - Fund) which is one of the main links in system of financial support of business does not give the sufficient chance to render assistance to subjects of entrepreneurship, to implement new types of service and to directly raise funds of the international financial institutions.

For the purpose of ensuring realization of the priority tasks determined within open dialogue of the President of the Republic of Uzbekistan with entrepreneurs spent on August 18 the current year, the organization of activities of Fund on the basis of international experience and creation of complex system for assistance to subjects of entrepreneurship in cooperation with the international financial institutions:

1. Transform Fund to "The company on development of entrepreneurship" in the form of joint-stock company (further - the Company) in case of establishment of the Ministry of Economics and finance.

Agree with the offer of the Ministry of Economics and finance on continuation of works on transformation of the Company on the basis of international experience and the direction it activities on:

independent implementation of the instruments of the additional help directed to complex support of subjects of small and medium business proceeding from their requirements and needs, and also increase in possibility of entrepreneurs to use support measures;

attraction of financial resources in the domestic and international capital markets, including means of the international financial institutions and foreign government financial organizations;

participation in implementation of the state, industry and regional programs, projects and actions giving opportunity to create workplaces by development of small and medium entrepreneurship;

support of innovative activities of subjects of small and medium entrepreneurship, stimulation of creation and production of new types of products, and also implementation of new effective technologies in productive activity;

financial assistance to projects of self-employed persons depending on type of their activities (works, services);

broad support of implementation of "green" and energy-saving technologies, and also renewable energy resources in the field of rendering services, production and cultivation of products.

2. To provide to the company since March 1, 2024 the measures of support of subjects of entrepreneurship providing:

a) on projects of production and rendering services of subjects of medium business:

entering into the authorized capital of initiators in the form of real estate objects, the equipment and other form of the share in the amount of 15 percent of cost of projects but which is not exceeding 20 percent or 3 billion sum of the authorized capital;

property acquisition in the amount of 70 percent of the real estate and the equipment, but not exceeding 10 billion sum, and its transfer to the initiator on the basis of mortgage of services with condition of charge of annual interests on debt remaining balance at the rate exceeding the main rate of the Central bank on 4 percent points for a period of up to seven years or payment by installments;

b) on projects of subjects of small and medium entrepreneurship:

placement of financial resources in national and foreign currency in commercial banks, the microfinancial and leasing organizations for allocation of the credits (leasing);

provision of guarantees the total cost which is not exceeding 5 billion sum on the credits, lysinedin, to the bank guarantees and letters of credit provided in national and foreign currency by commercial banks, the microfinancial and leasing organizations;

provision of guarantees (portfolio guarantees) on the credits within limit, the general size and conditions established based on the intermediary agreements on use of company funds signed with commercial banks;

c) compensation provision to small business entities in 2024 - 2026 at the rate to 40 percent of the main rate of the Central bank for the term of no more than three years on the credits to 5 billion sum allocated in national currency at the rate which is exceeding the main rate on 4 percent points and not exceeding 1, the 75-fold size of the main rate.

Approve tools and conditions of financial support provided to subjects of small and medium entrepreneurship by "The Company on Development of Entrepreneurship" Joint-stock company according to appendix No. 1.