Tashkent, Uzbekistan (UzDaily.com) — During a plenary session of the Legislative Chamber of the Oliy Majlis of Uzbekistan, a draft law aimed at improving the financial support system for small and medium-sized businesses (SMEs) was reviewed and approved in its first reading.

The draft law proposes the creation of an organization responsible for providing guarantees (sureties). This organization will function as a legal entity and carry out professional activities related to guarantee provision, as well as offer other services in accordance with legislation. Its activities will be overseen and regulated by the Central Bank.

Additionally, the draft law provides for the establishment of non-bank credit organizations in the form of joint-stock companies or limited liability companies. It also permits microfinance organizations to offer financial services to legal entities in foreign currency.

The law outlines a procedure for notifying the Central Bank if individuals or legal entities acquire between 10 and 20 percent of the share capital in a non-bank credit organization.

The deputies supported the initiative, and the draft law was passed in its first reading.