November 29, 2013
Within the State program \\\"Year of well-being and prosperity\\\"
Within the State program \\\"Year of well-being and prosperity\\\" small businesses and entrepreneurs were granted loans worth 6.2 trillion soums

Tashkent hosted a press conference: \\\"On allocation of mortgage, consumer, education loans and supporting young entrepreneurs\\\", which was attended by representatives of the Central Bank of Uzbekistan and commercial banks.

- “Commercial banks in our country strive to support young people, to provide practical assistance and create necessary conditions for their involvement in entrepreneurship. The purpose of today\\\'s press conference is to highlight the activities of commercial banks in 10 months, particularly, on the implementation of tasks entrusted to the banking system in the framework of the Program of measures within the national youth policy”, - said in his opening speech, the Director of the Department for monitoring of the investment portfolio of commercial banks of the Central Bank of Uzbekistan, Azamat Kasimov.

To date, Uzbekistan has adopted over 15 legal documents to regulate the allocation of mortgage, consumer and student loans to young people and young families, financial assistance to farmers and craftsmen.

Mortgage loans to young families are provided at an interest rate not exceeding the refinancing rate of the Central Bank for a term of 15 years with a 3-year privileged period. Interest rate for mortgage loans for the purchase of modern rural houses is set at 7%. In addition, young families are granted with consumer loans at an interest rate that does not exceed the Central Bank refinancing rate for 3 years, up to 200 times the minimum wage for the purchase of locally manufactured household goods, including furniture and appliances. A system of consumer loans has been established at an interest rate not exceeding the Central Bank refinancing rate for 3 years, up to 50 times the minimum wage, for which only copy of passport and earnings statement from the employer are required.

- Under current legislation, commercial banks provide educational loans to students at undergraduate level for up to 10 years, as well as, those at Master’s studies for a term of 5 years, including the period of studies, - told us the chief economist of the Central Bank of Uzbekistan Otabek Tadjidinov.

To support young people from orphanages and children’s homes \\\"Mehribonlik\\\" and the disabled since childhood, banks provide interest-free student loans and to other categories of students - a variable interest rate that does not exceed the Central Bank refinancing rate.

Financing the projects of young entrepreneurs, craftsmen and farmers is carried out in accordance with \\\"Procedures of lending to farms and small businesses in the national currency\\\" and the Regulation \\\"On procedure of lending to young families on preferential terms\\\" and other acts.

The participants noted that funds of the Special Fund for concessional lending of commercial banks are mainly allocated for financing high-tech and innovative projects of small businesses and entrepreneurs, micro manufacturing companies, small enterprises, and farms that are located in remote and inaccessible areas, and in areas and cities with surplus manpower. And, their interest rate does not exceed 50% of the Central Bank refinancing rate.

In 2008-2012, to young families were lent mortgage loans worth 643.9 billion soums (Currency rates of CB from 29.11.2013 1$=2190.67 soums), consumer loans - 287.7 billion soums, educational loans - 103.0 billion soums, and to young entrepreneurs, craftsmen and farmers - over 1.6 trillion soums.

And in 2012 the volume of allocated mortgage loans increased by 3.1 times compared to 2008, consumer loans - by 2.3 times, education loans - 11.3 times, to young entrepreneurs, craftsmen and farmers - 2.9 times. Commercial banks within 10 months of the year under the State program \\\"Year of well-being and prosperity\\\", issued loans worth 6.2 trillion soums to support small businesses and private entrepreneurs, of which 286.9 billion soums - business loans, 150.4 billion soums - mortgage loans to young families, 87.8 billion soums - consumer loans and 47.3 billion soums – education loans.

In order to finance business projects of professional colleges’ graduates in 10 months of 2013, banks issued preferential micro loans worth 116.2 billion soums, which is by 2.7 times more than the same period last year.

The activities of banks to support the young people is not merely limited to lending for their business projects, but rather focus generally on their involvement in business activities.

The Central Bank, the Ministry of Higher and Secondary Special Education, Chamber of Trade and Commerce and the Public Youth Movement \\\"Kamolot\\\" in line with the \\\"Complex of measures to actively engage in business activities the graduates of professional colleges and further expand the scale of financial services to implement their business projects”, in 2012-2013, in the regions are being organized regular seminars, business meetings and round tables with the public, young entrepreneurs and graduates of professional colleges in all regions, especially in remote and labor-surplus areas.

As part of these projects in 10 months of the year, 1215 small businesses were issued by commercial banks loan certificates entitling them for privileged loans. In addition, they have been lent funds worth 92.5 billion soums. As a result business plans of 713 new entrepreneurs were financed with privileged loans worth 10 billion soums, and the business plans of 293 women entrepreneurs - worth 9.7 billion soums.

At the end of the press conference, the participants stressed that active financing of business projects of small businesses and entrepreneurs by commercial banks makes a worthy contribution for the welbeing of every family and the country as a whole.

(Source: UzReport.com)


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