NEWS AND EVENTS
August 22, 2013
The National Bank to launch a special fund to assist small businesses and entrepreneurs in their efforts to bolster exports
Uzbekistan to create a new fund that will deal with the expansion of export potential of small business and entrepreneurship, as well as assist them in increasing the production of modern, competitive products and promote them for export.
The National Bank for Foreign Economic Activity of Uzbekistan will established the Fund to support small businesses in exports with regional offices in the regions. This has been approved by the Decree of the President of Uzbekistan on additional measures to support the exports of small business and entrepreneurship.
The new unit will conduct marketing research of foreign markets, the study of the current and future market demand, the identification of potential opportunities for the export of products made by domestic small businesses and private entrepreneurs. In addition, the fund will analyze the range of products, determine the level of competitiveness in foreign markets, build relevant databases and develop proposals to ensure conformity of export demand on the global and regional markets.
One of the main missions of the new unit will be provision of legal, financial and organizational services for small businesses, their promotion in foreign markets, finding potential buyers, preparation and conclusion of contracts, support of export transactions, protection of exporters from risks, as well as payment for necessary licenses, certificates, permits and other fees required by the laws of foreign countries. In addition, the fund will assist in increasing the participation of small businesses and private entrepreneurs in foreign tenders, as well as contacting local producers and foreign buyers by organizing fairs and presentations.
Small Business Export Support Fund will provide services exclusively to small businesses, private entrepreneurs and farmers. The initial size of the fund’s capital will be 5 billion soums, of which $2.5 billion will be generated through a one-time contribution from the state budget, and the rest through voluntary contributions of the founders, small businesses, private entrepreneurs, the National Bank, Commerce and Industry Chamber of Uzbekistan, as well as other commercial banks, financial institutions and donors. The sources of funds will be incomes derived from the provision of legal, financial and organizational services to small businesses and private entrepreneurs in the form of commission payments in the amount of generally accepted in international practice, up to 3% of the contract value.
The fund will provide small businesses, private entrepreneurs and farmers free financial assistance for the development of export-oriented domestic brands, provide access to new markets and promote exports of new products, including the payment for necessary licenses, permits and certificates in accordance with the laws of foreign countries, as well as registration fees and other fees associated with participation in international tenders, foreign exhibitions and fairs.
The presidential resolution has released the Small Business Export Support Fund, including its regional affiliates, up to January 1, 2019 from all taxes, levies, fees and mandatory contributions to state funds, with the exception of a single social payment.
(Source: “Uzbekistan Today” newspaper)