Uzbekfilm’s Debt Reaches €22.9 Million

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan’s Uzbekfilm film studio has accumulated €22.9 million in credit liabilities, with company assets, including land plots, pledged as collateral for the loan. Jakhongir Akhmedov, first deputy culture minister and director of the Uzbek Cinema Agency, said this.

According to Akhmedov, the studio’s financial problems extend beyond its credit debt. A tax debt of more than 1 billion soums puts 12 vehicles on Uzbekfilm’s balance sheet at risk of being put up for auction. He said this could happen within 12 days.

The film studio has also accumulated significant salary arrears owed to its employees.

Akhmedov said Uzbekfilm would need to secure orders worth at least 60 billion soums annually to cover its operating costs independently. In his assessment, the studio has effectively become dependent on state orders.

The director of the Uzbek Cinema Agency also said Uzbekfilm lacks a business model and has not transitioned to market-based mechanisms.

According to Akhmedov, the task is not only to preserve the film studio but also to carry out a fundamental reform of the company.

The plans envisage creating a national film company that would be financially sustainable, operate under a modern management system, bring together creative teams, attract private investment and international partners, and independently bring film productions to the market.