UZS 2 Trillion in Additional Concessional Financing Allocated for Family Entrepreneurship Projects

An additional UZS 2 trillion in concessional financing has been allocated this year to support family entrepreneurship projects. For so-called "challenging" mahallas, the interest rate on preferential loans has been reduced from 17.5% to 12%.

Starting August 1, bank officers assigned to individual mahallas will be authorized to use these funds to finance entrepreneurial projects that they independently identify and supervise. This was announced during a videoconference meeting chaired by President Shavkat Mirziyoyev, which focused on creating a new development environment in mahallas and improving the work of the "Mahalla Seven" community support system.

Key performance indicators (KPIs) will be introduced for bank officers working in mahallas. These indicators will measure their effectiveness in promoting business activity, supporting entrepreneurship, creating new jobs, and increasing household incomes. By the end of the year, district and city hokims, together with mahalla chairpersons, will develop specific task lists and target projects for each assigned bank officer.

This year, state-owned banks also launched an initiative to introduce sector-based specialization in 100 mahallas. Last year, with the participation of nine state-owned banks, Agrostar companies were established in mahallas to support the development of the agro-industrial sector.

Going forward, the role of banks will extend beyond sector specialization. In cooperation with Agrostar companies, an integrated production and supply chain will be established, covering the entire process from cultivation and processing to storage, packaging, and product marketing. The President instructed the responsible authorities to develop the corresponding program within one month and begin its implementation in 1,000 mahallas across the country.