The document seeks to help such classes as college and university graduates to get access to microfinancing. It also aims to galvanise small businesses that provide new jobs.
The resolution approves a suggestion by the economy and finance ministries and the Central and commercial banks to introduce a new microcredit project for small and private businesses.
Under the resolution, the purpose of soft microcredits is to:
Generate more jobs in small family and private business sector;
ensure maximum access to microfinancing;
raise income for the socially vulnerable and strengthen the role of self-governance bodies in employment activities.
The document approved forecasts on soft loans by commercial banks in Tashkent. It also set out a list of business activities cleared for soft loans.
Soft loans conditions are now represented as follows:
a soft loan sum of up to 200 minimal wages;
a period of up to three years with a 6-month grace to repay the debt; and
a yearly rate of 9% for one job created, 8% for two jobs, 7% for 3-4 jobs, and 6% for five and more jobs.
If an applicant cannot repay the debt, commercial banks can accept:
the property and self-governance bodies’ securities for sums of up to 100 minimal wages;
third party securities, insurance policies and other lawful types of payment for sums exceeding 100 minimal wages.
When giving loans, commercial banks can take into account expenses incurred during the application.
Commercial banks and the Chamber of Commerce and Industry were tasked with assisting applicants.
The Central Bank and commercial banks were tasked with finalising the experiment in 2017 and making suggestions on how to expand the project in other regions.