09 August 2023

A youth center for 1 trillion soums will appear in Karakalpakstan

Shavkat Mirziyoyev signed a decree approving new support measures for businesses in Karakalpakstan, Spot reports. The document was published on Lex.uz.

Due to soft loans, companies under the foundation of commercial banks will implement investment projects to expand local production with further sale to entrepreneurs. It is planned to attract $200 million from international organizations for this.

$100 million of credit funds will be distributed from the Reconstruction and Development Fund through the NBU, Aloqabank and Uzpromstroybank. The money will be provided for 10 years, at a rate of 5% per annum on loans in foreign currency and 12% in soums.

From 2024, the Central Bank will allocate at least 2 trillion soums for family business programs in Karakalpakstan. Loans up to 1,000 BRV (330 million soums) will be allocated to financially support new family businesses.

It was instructed to create a Youth Socio-Economic Center in the Khojeyli district. It will include an IT park, a technology park, startup support groups, cultural and spiritual centers, libraries, a sports complex, as well as housing for employees and resident entrepreneurs.

1 trillion soums will be provided for the construction of the complex. Residents of the center for the employment of unemployed youth will be provided with benefits for FEZ participants.

Entrepreneurs working in the Autonomous Republic will receive an increase in the size of the state guarantee for loans for their business projects. Guarantees will cover up to 75% of the loan amount, their maximum amount will be 5 billion soums.

When fulfilling investment obligations in small and youth industrial zones, entrepreneurs will be able to privatize the land and real estate allocated to them. Also, on a competitive basis, they will be provided with state-owned objects that were not sold at auctions.

The Council of Ministers of Karakalpakstan in 2023-2024 will be able, by its decision, to provide investors with land for direct long-term lease. The condition is an investment of at least $1 million for a site in Nukus and $300,000 in other areas.

In June, the president signed a law with a previous package of measures for Karakalpak businesses. It was about reducing social tax rates to 1% and a number of other taxes – twice.