Uzbekistan lowers Loan Rates to boost Karakalpakstan entrepreneurs
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Shavkat Mirziyoyev, President of Uzbekistan, announced lower interest rates on business loans in Karakalpakstan, an autonomous republic within Uzbekistan. He said the rate for family entrepreneurs will fall from 17.5% to 12% through a new credit line and coverage of interest by the Entrepreneurship Development Company.
Mirziyoyev highlighted the success of 2,000 Karakalpakstan entrepreneurs who have repaid 2 trillion 145 billion soums in loans over three years, establishing themselves as dependable bank customers.
He believes this success model could create employment and income for another 30,000 to 40,000 people. The President directed the bank serving the region to establish a 300 billion soum credit line at 16% interest. With the Entrepreneurship Development Company covering 4 percentage points, the final rate for entrepreneurs will be 12%. Mirziyoyev also instructed the remaining eight banks to create similar loan products within one month.
He plans to double funding for successful “driver” projects next year, allocating US$100 million to support at least 50,000 people.
