Photo: darakchi.uz
The Uzbek government has introduced a new system of interest-free loans for low-income families, allowing them to start their own businesses, such as purchasing necessary equipment or replenishing working capital. The financial aid program was outlined in a presidential decree signed by Shavkat Mirziyoyev, which came into effect on February 18.
The initiative is part of the «From Poverty to Prosperity» program. Citizens listed in the national registries of low-income families and socially vulnerable individuals will be eligible for interest-free loans of up to 50 basic calculation units (BCUs) — 1.87 million soums ($1,440) for a period of six months to three years. The funds must be used exclusively for launching a business project.
Special conditions apply to those planning to engage in farming or horticulture. In these cases, a loan term of up to five years is available, with a six-month grace period. The maximum loan amount is 200 BCUs — 75 million soums ($5,770). The funds can be spent on drilling water wells, purchasing pumping equipment, installing drip irrigation systems, and laying electrical grids for agricultural needs.
The decree also provides subsidies of up to 10 minimum wages (11.5 million soums or $890) for former prisoners who plan to start a business or engage in craftsmanship.
There are also incentives for entrepreneurs who create jobs. They can receive an interest-free loan of up to 10 BCUs (3.75 million soums or $288) per new employee, provided they hire unemployed individuals or members of low-income families seeking self-employment as homemakers.
Additionally, businesses that mentor low-income citizens and help them establish a steady income can receive a grant of 3 BCUs (1.1 million soums or $86) per impoverished family, up to a maximum of 30 BCUs. Forty percent of the funds will be provided as an advance, with the remaining amount disbursed once the recipient registers as an entrepreneur or self-employed individual.
The system of subsidies and financial aid aims to provide income-generating employment opportunities for vulnerable populations and encourage entrepreneurial initiatives. By the end of the year, the program is expected to benefit over 140,000 people.
