Small and Medium-Sized Enterprise Finance in Uzbekistan: Challenges and Opportunities

7. POLICIES TO PROMOTE SME FINANCE 
The Government of Uzbekistan is committed to SME development, and as was 
discussed in earlier sections, has undertaken significant reform measures to improve the 
enabling environment, and encourage its expansion with the objective of 
creating jobs. Efforts have been exerted to address the various challenges confronting 
SME development, as the main creators of new jobs and employment opportunities. 
Improving their access to finance as well as their access to business development 
services have been a key priority on the government's agenda.
Government programs supporting SMEs include the interest rate subsidies on loans and 
fiscal incentives (tax holidays, tax and customs duties exemption), as well as direct 
lending to targeted industries such as manufacturing. An example of such a program is 
the State Program on Localization for the production of quality competitive import-
substituting products.

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ADBI Working Paper 997 
D. Tadjibaeva 
38 
State support for SME development including access to finance is specified in the “Law 
on guarantees of freedom of the entrepreneurial activity” (new edition)
61
 of 2 May 2012 
№328 and the “Law on family business”
62
 
of 26 April 2012 №327. According to these 
laws, main areas for SME state support are as follows:
• Formation of favorable legal and regulatory business environment;
• Financial and investment support and provision of subsidized lending and 
guarantees;
• Assistance for creation and development of support infrastructures;
• Business information and consultancy support;
• Export promotion:
• Support for introducing innovations and modern technologies;
• Support for participation in public procurement. 
Despite the efforts of the government over the past years to increase private sector