Due to active measures undertaken by the Government, macroeconomic and business environment where small and private businesses are functioning has been considerably improved. It is recognized both by domestic businessmen and foreign experts.
Small business support has always been among the priorities in the activity of the National Bank. In 2004 the Bank was actively implementing measures on crediting small, private enterprises and development of the enterprise initiative. As it has been stated above, a large part of the economic entities are the customers of the National Bank, and they represent small and private enterprises enjoying the priority status in the credit portfolio of the Bank.
The National Bank serves the major channel to attract foreign investments for the development of small and private businesses. Within the framework of credit lines of the EBRD, ADB, KfW, IFC, OPEC Fund and a number of export-credit agencies, the Bank has financed 141 small business investment project costing US$ 442,9 million, of credits amounted to about US$ 225.5 million.
Speaking about new areas of cooperation with the foreign financial institutions regarding support of small business in the Republic, it is necessary to note the substantial expansion of partnership relations between the National Bank and the Islamic Development Bank (IDB) in 2004. The IDB provided the National Bank with the amounting to US$ 15 million to finance investment projects implemented in the private sector of the country.
Additionally, within the framework of cooperation with IDB the National Bank provided the guarantee for the amount of US$ 7.6 million to finance procurement purchases of the processing equipment for the textile project of joint venture «Alisher Navoi International» (Andijan province).
Uzbekistan’s commitment on Article VIII of the IMF Articles of Agreement ensuring conversion of the national currency on current accounts operations, promoted the essential simplification of foreign currency resources accessibility for the economic entities. The procedure of foreign currency exchange operations has been maximally simplified, and a number of restrictions concerning registration of contracts and customs control have been eliminated.
Thereby, as for now, favorable conditions have been created for the domestic producers of goods in the field of foreign currency and economic relations evidenced by the increased volumes of foreign trade operations carried out by small and private businesses of the country.
By utilizing own and attracted resources, including those attracted on the preferential basis, the National Bank has provided support to entrepreneurship amounting to 105.8 billion Soum, having created about 6 thousand job places.
There is a special demand from the entrepreneurs for micro-credits issued by the National Bank for development of production facilities, services and construction. During 2004, having attracted all sources of finance, the Bank allocated 967 micro-credits amounting to 3.8 billion Soum. This type of services is particularly popular in the rural area farmers and dekhkan entities willingly apply for them. So far during the indicated period the National Bank has granted this sector with the micro-credits amounting to 2.4 billion Soum.
Thereby, micro-credits promote development of market structure in the rural area and expand the class of new proprietors.
We see the results of National Bank’s participation in the nation-wide support program of small and private businesses development on counters of our shops, where domestically produced goods are safely superseding import, and in the widening sphere of the first class services.