Business Expenses

MICROCREDITING AND MICROLEASING

Commercial banks and microfinance organizations offer services related to microcrediting and microleasing. The biggest supplier ofmicrocredit and microleasing services in the country is Microcreditbank JSC, created with the Decree of the President of Uzbekistandated 5 May, 2006. Today Microcreditbank has extensive financial infrastructure in all regions of Uzbekistan, which consists of 82branches and minibanks. Bank's authorized funds amount to 150 billion soums.

Microloans are issued both under collateral and trust. Main form of microcredit collateral is property. The object of collateral can beany property including items and property-related rights (requirements) according to the Law on Collateral of Uzbekistan.

Microcredit Service Fees

Purpose of the Loan

To generate start-up capital To develop (expand) business and replenish working capital

Recipients

small businesses with legal entity status

Loan maturity

Up to18 months Up to 24 months

   

 

Purpose of the Loan

To generate start-up capital To develop (expand) business and replenish working capital

Loan amount

from 50 to 200 MMW Up to 500 MMW

Loan interest rate

3% APR 50% of Central Bank's refinancing rate

Security for loan

Liquid goods, foreign currency, and other hard currency deposited as a pledge; highly liquid securities; third party guarantees for the benefit of the bank

*) Only legal entities with flawless financial reputation can be guarantors. Trust-based microcredits can be offered only to the borrowers with good credit history, who have made timely payments on three loans taken earlier. In making the loan on the basis of trust, the borrowers open mandatory savings account in the amount up to 20% of the loan as the pledge of future payments, and the bank accrues interest thereon.

Microfinance Service Fees

Type of Lease

Microleasing services

Financial Leasing Services

Recipients

Private company; smallholder with legal entity status; commercial farmer; microfirm; small business

Lease Period

Up to 36 months

from 36 to 60 months

Lease Amount

2000 MMW

At the discretion of the parties

Interest Rate

5% APR

At the refinancing rate of the Central Bank

Collateral *

Liquid goods, foreign currency and other forms of hard currency deposited as collateral; 30 percent deposit by the client; highly liquid securities; third-party guarantees for the benefit of the bank

*) Only those legal entities with flawless reputation can be guarantors. Source:www.mkb.uz

PROPERTY ASSESSMENT

In order to determine the liquidity of the property including the collateralized ones, its market value is assessed to determine the mostplausible price, based on which the object of assessment can be sold off in an open competitive market. Furthermore, according tothe legislation, some real estate transactions require independent assessment of the object f trasnaction.

Institutions with respective license for assessment works conduct independent assessment of property. Today over 110 assessmentorganizations operating in all regions of the country have this license (the list of assessment organizations is available on the website-http://www.gkilicenz.uz/). The cost of assessment services is determined based on the condition of the site and complexity of technical works.

Assessment Fees

Object of Assessment

Unit of Measurement

Cost of services, 1 unit/thousand soums, excluding VAT

Apartments

1 site

From 250.0

Residential buildings and cottages

1 site

From 300.0

Constructed buildings and premises

1 site

From 500.0

Facilities and transmittors

1 site

From 300.0

Vehicles

1 unit

From 200.0

 

Object of Assessment

Unit of Measurement

Cost of services, 1 unit/thousand soums, excluding VAT

Machinery and equipment

1 unit

From 100.0

Technological lines

1 site

From 700.0

Office equipment

1 unit

From 100.0

Business (Packages of shares)

1 site

From 5 000.0

 

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO