Tashkent hosted a press conference devoted to the further improvement of the credit support to small businesses and private entrepreneurship by domestic banks.

According to the Central Bank of Uzbekistan the volume of credits issued by banks to small businesses made up 2.9 trillion soums as of July 1 this year or grew 1.4 times compared to the same period last year. These financial resources had a significant effect on increasing the competitiveness of the economy, deepening the processes of structural transformation and diversification of the economy. At the same time these activities became the basis for additional employment and growth in incomes.

In turn, the growth of social welfare increases demand for consumer loans. Measures taken to liberalize the activities of commercial banks led to the expansion of consumer credit and simplification of the conditions for their receipt. Today, domestic banks are offering consumer loans for the purchase of transport, real estate, support for young families and others. In general, in the first half year banks provided 87 billion soums of consumer loans. Experts say today we can say that the terms and conditions for granting loans take into account the financial possibilities of borrowers.

One of the main tasks of the national program of the Year of Family, approved by the president, is the development of small business and entrepreneurship, particularly family business, improving the welfare of families. Presently, commercial banks are carrying out a number of projects worth 272 billion soums aimed at social protection of young families, providing them with financial and moral support, including housing. In 2012-2013, domestic banks are projected to fund construction of 100 houses, consisting of 48 apartments each. It should be noted that the apartments will be provided on mortgage granted for up to 15 years at an interest rate not exceeding the Central Bank’s refinancing rate.

In addition, the banks took measures to improve the welfare of young families. In particular, they provide loans of up to 200 times the minimum wage for up to 3 years at a reduced interest rate for the purchase of durable consumer goods produced in Uzbekistan.

Also, banks are implementing comprehensive measures aimed at expanding the existing capacities of domestic producers of household appliances, consumer lending. This year banks are going to earmark not less than 30 billion soums of consumer loans for the purchase of electrical appliances. These funds will be provided to a total size of 50 times the minimum wage for up to 3 years.

At present, banks are working on the development of express loans. However, the expansion of consumer credit packages requires the revision of interest rates, further technological development of banking infrastructure. (Source: Uzbekistan Today newspaper)