Tashkent, Uzbekistan (UzDaily.com) -- The Presidential Resolution “On additional measures to increase the role and share of microfinance services in the development of entrepreneurial activity” was adopted.

According to the Resolution, the Program for Increasing the Accessibility of Microfinance Services will be implemented in 2024–2026, aimed at achieving the following targets:

increasing the volume of the microfinance market by at least 5 times;

coverage of microfinance services to over 1 million business entities;

doubling the amount of funds raised from individuals in the resource base of microfinance organizations;

providing assistance in self-employment and development of their business to about 500 thousand citizens who do not have an official income through the provision of microfinance services.

From 1 January 2024:

the maximum size of microloans is increased from 50 million soums to 100 million soums;

non-bank credit organizations are formed in the form of a joint-stock company or a limited liability company;

microfinance organizations are allowed to attract borrowed funds from non-residents and provide financial services to legal entities in foreign currency;

it is allowed to attract borrowed funds from participants (shareholders) - individuals, not exceeding twice the amount of the contribution made to the authorized fund (authorized capital), or the nominal value of the shares they own;

microfinance organizations have the right to carry out the activities of a payment organization after receiving the appropriate license;

the requirement to obtain prior permission from the Central Bank for the acquisition by individuals and legal entities of a share in the authorized capital of a non-bank credit organization is mitigated by increasing the 10 percent share established by law by 20 percent.

At the same time, if the size of the acquired share is from 10 percent to 20 percent, a procedure for notifying the Central Bank is introduced;

when microfinance organizations attract credit resources from commercial banks or business entities receive microloans from microfinance organizations, the opportunity is created to provide guarantees to the Entrepreneurship Development Company JSC;

When issuing loans to microfinance organizations, commercial banks are given the right to take as collateral the right of these organizations to claim the microfinance services they provide.

By 1 April 2024, a new microfinance organization specializing in the field of microfinance services will be created.

By 1 January 2024, a regulatory framework for the provision of Islamic finance services by microfinance organizations will be developed.