The number of microloans granted to the population is doubled

The maximum number of microloans in Uzbekistan will be increased to 100 million soums. Yesterday, on November 10, the President's decision "On additional measures to increase the role and share of microfinance services in the development of entrepreneurship" was adopted.

According to the decision, in the period 2024-2026, a program to increase the popularity of microfinance services aimed at achieving the following target indicators will be implemented:

•    Increase the size of the microfinancing market by at least 5 times.
•    Cover more than 1 million entrepreneurs with microfinance services.
•    Double the amount of funds attracted from individuals in the resource base of microfinance organizations.
•    Assist in self-employment and business development for about 500,000 people without official income by providing microfinance services.

Starting from January 1, 2024:

•    The maximum amount of a microloan will be increased from 50 million soums to 100 million soums.
•    Non-bank credit organizations will be established in the form of a joint-stock company or a limited liability company.
•    Microfinance organizations are allowed to attract loan funds in foreign currency from non-residents and provide financial services in foreign currency to legal entities.
•    It is allowed to attract loan funds from participants (shareholders) who are individuals in an amount not exceeding twice the amount of the contribution to the charter fund (charter capital) or the nominal value of the shares owned by them.
•    Microfinance organizations will have the right to perform the activities of a payment organization after obtaining an appropriate license.
•    The requirement to obtain preliminary permission from the Central Bank for the ownership of a share in the authorized capital of a non-bank credit organization by individuals and legal entities will be relaxed by increasing the 10 percent share established by the law to 20 percent. In this case, the procedure for notifying the Central Bank is introduced when the amount of the received share is from 10 percent to 20 percent.
•    When credit resources from commercial banks are attracted to microfinance organizations or when microcredits are obtained from microfinance organizations by business entities, the guarantee of "Entrepreneurship Development Company" JSC is created.
•    Commercial banks are given the right to pledge the right to demand for the provided microfinance services when granting loans to microfinance organizations.

By April 1, 2024, a new microfinance organization specializing in the field of microfinance services will be established. By January 1, 2024, the normative legal framework for the provision of Islamic financing services by microfinance organizations will be developed.