Uzbekistan to allocate $100 million for import substitution projects under new decree

As it was previously reported, Shavkat Mirziyoyev signed a decree to implement the plans and tasks outlined during the open dialogue with the business community on August 20.

The document approves a roadmap for the execution of the decree. By the end of the year, an additional 1 trillion UZS is planned to be allocated for microfinancing, aiming to expand the total market volume to 12 trillion UZS.

The allocation of funds to large enterprises, which are secured by government guarantees, will be reduced by 40% by the end of 2025. Small businesses will receive microloans amounting to 10 trillion UZS, and an additional $100 million will be directed towards projects focused on producing import-substituting products.

Additionally, there are plans to develop several legislative proposals, including one on microfinance banks. The Legislative Chamber of the Oliy Majlis passed the relevant draft in the first reading in early August.

By October, a draft law on the development of microfinance services is expected to be prepared. This law is anticipated to grant microfinance organizations the right to attract borrowed funds in foreign currency from non-residents and to provide services in foreign currency to legal entities.

By November, a draft law regulating the factoring industry is expected to be prepared. Another project will create the legal framework for Islamic financial services, including guarantees for deposits attracted under Islamic rules.