NEWS AND EVENTS
June 25, 2014
Loans to Back Business Ideas
The total value of the loans made by Uzbekistan’s commercial banks to female entrepreneurs has grown by over 30 times within the past ten years, exceeding 2.6 trillion soums (Ńurrency rates of CB from 25.06.2014 1$=2308.39 soums)
According to the Central Bank of the Republic of Uzbekistan, these figures are clearly showing the results of the policies aimed at improvement of Uzbek women’s incomes, as well as developing the local loan making organizations and so strengthening the state’s economy. Today, there are thousands of stores, bakeries, beauty salons and other businesses run by enterprising women throughout the country, which proves the efficient use of the loans that have been taken out to open them. A loan received, however, never guarantees a successful business, so the banks support the female entrepreneurs throughout their whole projects being implemented: they provide them with consulting services, help them to develop proper business plans, obtain necessary licenses and export certificates, etc. Among these and other measures taken to select and fund promising business projects in the republic stands out the organization of socially important business initiative contests for women entrepreneurs.
Uzbekistan’s banks also make soft loans to manufacturing business with over 50% of female employees.
In the current year, the banks are allocating over 600 billions soums to the development of female entrepreneurship in the country. Besides loan making, they are funding production expansion, re-equipment and construction projects with regard to women’s small businesses.
Foreign partners also take part in this process. Uzbekistan’s People’s Bank and Mikrokredibank, for instance, closely cooperate with German Savings Banks Foundation for International Cooperation. The foundation allocated a sum to set up a micro-loan fund in these Uzbek banks to make loans to local small businesses run by women or employing predominantly women, as well as finance manufacturing, food processing, home-based business and other important projects.
Thanks to such loans and funding practices, business initiatives of thousands of Uzbek women are realized in agricultural and services sectors.
(Source: “Uzbekistan Today” newspaper)