16.12.2024

On December 16, President Shavkat Mirziyoyev chaired a meeting  devoted to the priority tasks of providing employment and raising incomes in mahallas with the participation of banks.

In recent years, the activity of the banking system on the ground has yielded tangible results. In particular, in Uychi district of Namangan region due to support of 3.2 thousand active clients by banks 9 thousand people were employed, and the number of low-income families decreased by 6 thousand.

In Saykhunabad district of Syrdarya region, projects were implemented in 3.2 thousand households, resulting in 12 thousand people learning to earn money from homestead plots.

In Zarbdar district of Jizzak region 13.5 thousand jobs were created, and in Gijduvan district of Bukhara region - 28 thousand. As a result, more than 10 thousand residents have been lifted out of poverty.

A total of 3.3 million people in four districts - Uychi, Saykhunabad, Zarbdar and Gijduvan - have received a permanent income since the beginning of the year as part of these initiatives. The total number of formally employed people reached 10.5 million for the first time.

In addition, in such districts as Khojeyli, Asaka, Vabkent, Bulungur, Yangiyer, Kushtepa, Shavat and others, the unemployment rate has fallen to less than 5 percent.

The President noted that the Central Bank and regional banks should expand this positive experience and become a real support for the population.

- The year 2025 will be decisive in providing employment and reducing poverty - underlined Shavkat Mirziyoyev.

The meeting considered new opportunities and plans for the future. 

Over the past six years, under the family entrepreneurship program, 750 thousand citizens have repaid their loans on time and launched profitable businesses. Of these, 58 thousand opened new businesses. Now banks should support such clients and help them to move to the level of small and medium-sized businesses.

In this connection, a loan without conditions in the amount of 300 million soums will be provided within the framework of the program “Support for Small Business”. This will create jobs for 1.5 million people in the coming years.

Previously, banks received funds for family entrepreneurship programs exclusively from the state. The People's Bank took the initiative and began issuing loans of up to 50 million soums without requiring excessive documents and collateral under the “Financial Inclusion” program supported by the Asian Development Bank.

Following this example, next year nine state banks plan to allocate $1 billion in loans, which will provide income for 250,000 people.

Good results have been achieved in 27 districts thanks to the cooperatives established with the participation of active entrepreneurs. Next year, cooperatives on fish farming, rabbit farming, cattle breeding and beekeeping will be organized in 30 districts. 500 billion soums will be allocated for this purpose.

Startup projects that attract investment and create jobs will receive support. State banks will establish venture capital companies and allocate $50 million to support startups in mahallas. Each bank has been recommended to find a private partner to create business acceleration centers.

During the meeting, particular attention was paid to reducing unemployment in the lagging areas. For this purpose, it is planned to attract experienced entrepreneurs from other regions, providing them with soft loans and additional funds for infrastructure. This will make it possible to provide income to 1.3 million people.

If the state creates the necessary infrastructure, entrepreneurs are ready to realize 3.5 thousand projects worth 31 trillion soums and create 200 thousand new jobs. Next year, 1 trillion soums will be allocated for the infrastructure of these projects.

The analysis also showed that 85 thousand hectares of land are growing unprofitable crops, which reduces their efficiency. These lands will be consolidated into large contours and subleased to leading entrepreneurs. The lessee will be paid rent and a share from the sale of products.

It was noted that 60 advanced cities and districts have the potential to completely eliminate unemployment and poverty. This required 2 million people to be employed and 417,000 families to be lifted out of poverty.

Achieving this goal demands that the banking system be financially sound. It was noted that it is important not to rely only on state funds, but to attract $6 billion from external sources. Also the task was set to increase the volume of deposits of the population to $11 billion next year.

This year microfinance and factoring services worth 5.5 trillion soums were provided. Now state-owned banks will be able to open their own microfinance and factoring companies, attracting foreign investors.

The meeting also discussed the problems faced by banks and proposed solutions. For example, banks have 3 thousand real estate objects on their balance sheet, their sale would provide additional resources and create 150 thousand jobs.

Banks will be allowed to sell these properties directly at market value. In addition, it is proposed to amend the legislation to simplify the process of foreclosure of pledged property and accelerate its sale.

The Head of State emphasized the need to strengthen financial discipline and personal responsibility at all levels of the financial and banking system.

At the meeting, regional heads and heads of banks outlined plans for 2025 to provide income for more than 5 million people and lift 1.5 million citizens out of poverty.