Tashkent, Uzbekistan (UzDaily.com) -- The Fund for Reconstruction and Development of Uzbekistan (FRDU) will allocate US$100 million to banks with a state share to finance entrepreneurs.

The President of Uzbekistan signed a resolution “On additional measures to further support entrepreneurship and the development of cooperation between business entities and the population in makhallas.”

The document notes that 210 makhallas with difficult conditions have been identified in Andijan region, and in accordance with the President’s resolution "On measures to build the city of Yangi Andijan and further support for entrepreneurship in the Andijan region", US$40 million has been allocated to support entrepreneurship in these makhallas and expand cooperation between entrepreneurs and households.

The head of Uzbekistan instructed the FRRU to allocate US$100 million to commercial banks with a state share for further support, based on the work of mahallabay and honadonbai, entrepreneurship in mahallas with difficult conditions in other regions of the republic.

Funds are allocated to banks with a three-year grace period for a period of 7 years at a rate of 7% based on a separately approved distribution;

The resolution approved the number of makhallas in which the “Andijan experience” is being implemented, and the amount of allocated resources in the context of regions.

The document establishes that loans to promote the development of small business and family entrepreneurship on the basis of cooperation are allocated by banks to "leading" business entities assigned to makhallas with difficult conditions, in the amount of up to 2 billion soums for each makhalla for up to three years at a rate of 10% annual.

The State Fund for the Support of Entrepreneurship will provide guarantees to the "leading" business entities in the amount of up to 75% of the loan amount.