Business Expenses


Main source of lending for businesses in Uzbekistan are commercial banks, which offer loans for miscellanous purposes: to generatestartup capital, replenish working capital, purchase equipment, finance export and import transactions, etc.

As a rule, bank loans requires collateral according to the Civil Code of Uzbekistan and the Law on Collateral of Uzbekistan. In practicebanks demand collateral from the client in the amount of at least 125% of the loan as well as insurance policy, if the collateral is movable or immovable property.

Another important precondition of the loan is client's own contribution in the project by investing at least 25% of the project amount.

Interest rates of loans in local currency are within UZIBOR [1] + 2% (up to 4%) depending on the cost recovery and project risk. In caseof purchase of imported equipment and technologies, businesses can use certain preferences in borrowing including those related tocollateral and its insurance, acquisition of loans at preferential rates, customs clearance benefits, etc. Furthermore, commercial bankscan lend to their clients in hard currency using the credit lines of foreign banks with interest rates ranging within LIBOR [2] + 2% (Up to6%), averaging LIBOR + 4%.

Documents to be submitted to obtain bank loan

1.Loan application.

2.Business plan indicating projected cash flow

3.Financial reporting including

-        Accounting balance for the last reporting period with the mark of state tax inspection at the place of registration;

-        Records of outstanding payables and receivables including reconciliation reports of debts outstanding over 90 days;

-        Income statement

4.One of the following forms of collataral:

-        Collateralizing real estate or securities;

-        Guarantee of the bank or insurance company;

-        Third person guarantees;

-        Insurance policy of the insurance company on insurance of loan non-repayment risk

The market of leasing services is actively developing in the country. Entrepreneurs -lessees are able to use a number of benefits andpreferences. Inter alia, lessee is exempted from VAT on lease payments and propery tax, and the imported equipment under leaseagreement is exempted from customs duties and VAT.


Maximum Financing


Leasing interest

Term of leasing services, years

soums, thousand In hard currency, soums USD

Advance payment

In soums, %

In hard currency, %

1 - 5 *

500 000 300 000

at least 20% of the value oflease object

12 - 28

4 - 10

*) Mikrokreditbank. Aloqa Bank, Hamkor bank offer long-term lease (Up to 8 years).

[1]                     Offered interbank rate in Uzbekistan, which stood at 13,71% as of 01.01.2012

[2]                     Offered London Interbank rate.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO