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

The document envisages the implementation of the Program for Increasing the Accessibility of Microfinance Services in 2024–2026, aimed at increasing the volume of the microfinance market by at least 5 times and covering over 1 million business entities with microfinance services, Norma reports.

From 1 January 2024:

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

non-bank credit organizations are formed in the form of JSC or LLC;

microfinance organizations (MFOs) 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 shareholders - individuals, not exceeding twice the amount of the contribution made to the authorized capital, or the nominal value of the shares they own;

MFOs 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%. Moreover, if the size of the acquired share is from 10 to 20%, a procedure for notifying the Central Bank is introduced;

when MFOs attract credit resources from commercial banks or business entities receive microloans from MFOs, a guarantee can be provided to the Entrepreneurship Development Company JSC;

When allocating 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.

Microfinance banks will also be formed to provide basic banking services, and a mechanism for transforming MFOs into microfinance banks will be created.