President signs decree on additional measures to strengthen protection of private property
Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev signed a decree “On additional measures to strengthen the protection of private property and guarantees of property rights, radically improve the organization of work to support entrepreneurial initiatives, as well as expand access of business entities to financial resources and production infrastructure. ”
The head of Uzbekistan placed personal responsibility on the chairman of the Council of Ministers of Karakalpakstan, khokims of regions, districts and cities, heads of the Ministry of Construction and the Goskomzemgeodezkadastr for unconditional execution and strict observance of the norms of the Constitution on the inviolability of private property, ensuring freedom of economic activity and entrepreneurship, protection against encroachments, creating the necessary conditions for the preservation and enhancement of private property.
The decree outlines the priority tasks of executive authorities in the field of protecting the rights and interests of business entities:
- ensuring strict observance of the principle of priority of the rights and legitimate interests of business entities;
- assistance in the creation of small industrial zones on the basis of inactive production facilities and non-residential facilities, the allocation of land in an auction;
- providing practical assistance in gaining access to financial and commodity resources, engineering and communication networks, the development by business entities of practical skills in organizing investment and production processes, as well as in finding reliable partners and new markets for products;
- adoption of systematic measures for the wide involvement of the population in entrepreneurial activity.
The decree prohibits the provision of exclusive rights to conclude a direct contract with the aim of eradicating the infringement of the rights of entrepreneurs.
At the same time, procurement procedures should be carried out openly, transparently, by involving all business entities.
The President instructed the Cabinet of Ministers to adopt the necessary acts on the reference norms of the law, which imply the implementation of privatization, as well as the regulation on the privatization of land.
The head of Uzbekistan agreed with the proposal of the Chambers of the Oliy Majlis and the Cabinet of Ministers of the Republic of Uzbekistan to conduct a legal experiment till 1 February 2020 to test the privatization of non-agricultural land in Syrdarya region.
According to the results of a legal experiment in Syrdarya, by 5 February 2020, proposals should be made to improve the law.
Starting from 1 October 2019, the President established the procedure according to which free non-agricultural land plots for business and urban development are provided exclusively through an online auction at the E-IJRO AUKSION site.
Individuals and legal entities are given the right to make proposals for posting information about the land plot and the planned construction site with specific investment obligations in the YERELEKTRON information system.
Starting from 1 September, the Council of Ministers of Karakalpakstan, khokimiyats of regions and Tashkent is granted the right to seize and sell unused state property if the owners - higher state organizations - do not provide or do not execute “road maps”.
President Shavkat Mirziev also established the Agency for the Development of Small Business and Entrepreneurship under the Ministry of Economy and Industry.
Its structure will include the State Fund for the Support of Entrepreneurship, which is formed on the basis of the State Fund for Supporting the Development of Entrepreneurship under the Cabinet of Ministers.
According to the document, Microcreditbank and Khalq Banks are identified as banks that finance small business and enterprise development projects as part of state-owned family business development programs.
The President instructed to send to Microcreditbank and Khalq Banks funds released from previously allocated loans under state programs for the development of family entrepreneurship and, in general, financial support for entrepreneurial activities of the population, for subsequent lending to small businesses and entrepreneurship at rates closer to market in order to eliminate distortions in the lending market, to ensure equal access to monetary resources and increase socio-economic returns using target financial resources.
The Agency is being created as a state body to expand and increase the effectiveness of the system for supporting the development of entrepreneurship, involving broad sections of the population in doing business, and providing access to sources of start-up capital.
The head of Uzbekistan transformed the State Fund for Supporting the Development of Entrepreneurship under the Cabinet of Ministers of the Republic of Uzbekistan into the State Fund for the Support of Entrepreneurship, transferring it to the structure of the Agency.
The President increased the amount of guarantee on loans from commercial banks from 2 billion soums to 8 billion soums, while maintaining the maximum guarantee amount up to 50 percent inclusive of the loan amount from the Fund.
New rates are set for the provision of fund compensation: for loans in national currency, the amount of compensation is 5 percentage points, for loans in foreign currency - 30% of the loan rate, but not more than 3 percentage points.