Tashkent, Uzbekistan (UzDaily.com) - “I carefully studied the issues you raised. Therefore, I am fully aware of all the problems and issues that concern you. To date, we have systematized the most pressing problems and developed a program of measures in 7 key areas to address them. We would like to discuss them in detail with you today. First, forty percent of your applications are related to business financing and lending. In particular, high interest rates were noted in the main part of applications, and many loans are issued for a short period, on conditions that are unfavorable for an entrepreneur,” the President of Uzbekistan Shavkat Mirziyoyev said.

Indeed, it must be admitted that the terms of many loans that are now issued to entrepreneurs do not exceed three years. In addition, loans issued by banks to approximately 18 thousand entrepreneurs in foreign currency at 8-10% per annum create additional costs due to the steady growth of the exchange rate. More than a thousand complaints were received on this issue. Therefore, it is necessary to take measures to form a long-term resource base of commercial banks and acceptable interest rates on loans. Additional opportunities will be used to increase the capital of banks. To this end, next year, banks will be allocated an additional 600 million dollars from the Fund for Reconstruction and Development on Market Principles. These funds will be placed in both state and private banks on a competitive basis. The funds will be allocated to banks that provide the best business plan, projects with the highest profitability and the largest number of jobs.

Secondly, the bank itself, which seeks to attract the above funds, will also attract at least 30 percent of additional resources from external and internal financial markets. In particular, next year banks will issue Eurobonds in national currency in the amount of 5 trillion soums on international financial markets. We also create ample opportunities for the entry of large foreign banks with modern technologies, ready to work in the Uzbek market. This, in turn, will create favorable conditions for our entrepreneurs and create healthy competition in the banking system, which we urgently need, said the head of state.

He stressed that "at today's meeting, every bank manager should ask himself the question" what do I need to change in order to be a worthy competitor and delight entrepreneurs "and make a serious conclusion."

“Thirdly, regardless of the currency, a system of lending to entrepreneurs in the national currency -“ soums” and at a reasonable interest rate for business will be created. Hundreds of our entrepreneurs who have received loans in foreign currency and are in a difficult situation today raised this issue in their appeals. A foreign exchange risk management organization will be created under the Ministry of Finance. This organization will convert funds attracted by banks in foreign currency into soums and create the necessary conditions for lending in the domestic market only in national currency,” he said.

Mirziyoyev said that from now on, an increase in the exchange rate of the dollar or euro will not create additional problems or additional costs for the entrepreneur.

“Fourth, the practice of limiting the term of lending to banks at the expense of concessional funds attracted by the state from international financial institutions will be abolished. Fifth, starting from October 1 of this year, in accordance with an agreement between an entrepreneur and commercial banks, loans totaling about US$ 1 billion from about 6,000 entrepreneurs, who previously received up to US$ 1 million in foreign currency, will be converted into national currency. In general, due to the above mechanisms, long-term additional resources in national currency in commercial banks amount to an average of 30-40 trillion soums annually. Thanks to this, entrepreneurs will be able to obtain long-term loans in national currency and at least 5% less than the current rates,” the President said in his speech.