The Central Bank has developed a concept for supporting SMEs for 2026–2030

The Central Bank Has Developed an SME Support Concept for 2026–2030

The Central Bank of the Republic of Uzbekistan has prepared the Concept for Supporting Small and Medium-Sized Enterprises (SMEs) for 2026–2030. The document provides for 25 interconnected initiatives. One of the main tasks is to double the SME loan portfolio by 2030, which currently stands at 218 trillion soums, as well as to raise the share of loans to small and medium-sized businesses in GDP from 12% to 20%.

The key goal of the concept is to build an SME financing system based on market principles, competition, and digital data by 2030. It is expected to expand entrepreneurs' access to financial resources while maintaining financial and price stability. The concept has been approved in a pilot format. It is planned to review it annually, taking into account the results achieved and changes in market conditions.

This goal consists of three parts. The first is sustainable business development. Financing should correspond to the company's growth stage and help micro-businesses become small, and small businesses become medium-sized. The second is equal access to financing: it should be determined by the economic viability of the business, rather than its location, the gender or age of the owner, or the availability of collateral. The third is the stability of the financial system: lending should expand provided that banks comply with prudential requirements.

The concept also sets other benchmarks for 2030. The share of state financial institutions in SME lending should decrease from 73% to 65%, and in the event of the privatization of one of the large state-owned banks, to 55%. The share of non-bank credit organizations in total lending should grow from 1.7% to 5%. The coverage of SMEs with reliable credit information is planned to be increased from 68% to 80%. The share of online microloans in total microlending should reach 60%, and the average time for their issuance should be reduced to one hour. In addition, the Central Bank intends to expand access to financial services for enterprises without a credit history.

According to the regulator's estimate, the implementation of the concept should produce an effect for three groups. Entrepreneurs will get more sources of financing and financial products, simpler access to loans, and more transparent financial services. Special attention will be paid to entrepreneurs with limited credit history or insufficient traditional collateral, as well as those operating in the regions. For the financial system, stronger competition between banks and non-bank organizations, better risk assessment, and lower lending and monitoring costs are expected. In addition, more effective systems for the early identification of loans at risk of becoming non-performing should emerge. For state programs, a more targeted allocation of resources is provided based on a single database, coordinated monitoring, and shared performance criteria.

Of the 25 initiatives, 17 relate to institutional measures, five to the development of financial infrastructure, and three to the development of financial products. Institutional measures are designated as priority ones in terms of timeline: they should form the legal basis necessary to move infrastructure and product initiatives beyond the pilot stage.

Among the institutional initiatives is the transformation of the Business Development Bank. Within a single system, it is planned to combine long-term financing for SMEs, the attraction of resources from international financial institutions, and the distribution of targeted funding through financial intermediaries. Regardless of the chosen model, this institution will be subject to prudential regulation and supervision on a general basis. Commercial operations and state support measures will be accounted for separately, and the amount of the subsidy will be disclosed.

The concept proposes the creation of a financial ombudsman institution for the out-of-court settlement of disputes between financial organizations and businesses. Its authority should extend not only to consumers, but also to micro and small enterprises. Legislative amendments are also planned to allow banks to provide accounting, tax, legal, and advisory services. As noted in the document, a significant share of loan rejections for micro and small businesses is associated not with business inviability, but with poor quality of application preparation.

A separate initiative is dedicated to establishing a methodological framework for Islamic finance. It covers regulation, accounting, risk management, and supervision. Licensing will begin with pilot banks, including Islamic windows in existing banks, and will then expand to a larger number of organizations. The issue of tax neutrality will also be addressed to eliminate double taxation on transactions involving the sequential transfer of ownership rights.

The role of microfinance organizations in business financing is planned to be strengthened. Resources of the Apex Fund will be distributed among them on a competitive basis according to transparent criteria: portfolio quality, risk management systems, and coverage of rural areas. In addition, guarantee products will be developed that will allow MFOs to attract commercial bank loans.

Among the institutional measures, the creation of an innovation hub as a structural unit of the Central Bank's Financial Technology Development Department is also provided for. Improved communication with businesses on inflation and monetary policy is planned, as well as quarterly analytical reports on the status of SMEs by sector and region, which will be published on the Central Bank's website. In addition, the Central Bank intends to model the behavior of economic agents using big data, assess the SME financing gap, and develop mechanisms to support enterprises in specific sectors.

It is proposed to use the collateral value agreed upon by the parties as the starting price at auction. Legislation will codify the right of the parties to agree in writing on the value of the collateral, and the starting price will be automatically generated in the electronic auction system. According to the document, protracted realization of collateral and unpredictable sales prices increase the discounts that banks apply to collateral value, thereby reducing the volume of credit available to businesses.

To develop the currency risk hedging market, it is planned to establish the National Hedging Company and introduce a "client-bank-company" system. The company will ensure continuous quotes for derivative financial instruments on the domestic foreign exchange and money markets.

The concept also provides for a counter-guarantee system. At the open dialogue of the President of the Republic of Uzbekistan with entrepreneurs on August 18, 2026, it was announced that when receiving loans worth up to 10 billion soums, it will be sufficient for entrepreneurs to provide collateral in the amount of 25% of the loan amount.

Exporters selling goods through foreign trade houses, consignment warehouses, and distribution networks are proposed to be allowed to repatriate proceeds within the timeframes specified in contracts, instead of the current 180 calendar days. The validity of such a measure will be evaluated by the Ministry of Investments, Industry, and Trade, the Tax Committee, the Customs Committee, the Technical Regulation Agency, and the Central Bank. In addition, a transition to an expanded interagency regulatory sandbox based on the "one-stop shop" principle is planned. For medium-sized enterprises that are already exporting products or possess export potential, the "2000 Exporting Enterprises" program will be launched.

Five infrastructure initiatives are aimed at reducing information asymmetry in SME financing. Among them is a centralized digital platform for accounting, valuation, recovery, and sale of collateralized and distressed assets, with API integration with banks and marketplaces. Restrictions on collateralized property on this platform will be removed automatically after the full fulfillment of obligations. A post-monitoring and early warning system will also be created: the number of jobs created, revenue dynamics, timeliness of tax payments, and changes in borrowers' financial performance will be tracked as signals in it.

Open banking is planned to be implemented in stages. First, a test environment will be launched, then commercial banks and payment organizations will connect to it via API, and in the future, non-bank credit organizations. With the client's consent, businesses will be able to transfer verified data on transactions in accounts at other banks to potential lenders. Another initiative is a scoring model based on alternative data: tax, payment, sales information, and utility bill data. Borrowers will receive the right to request an explanation of the reasons for loan rejections. The digital marketplace for financial services for SMEs will get a mobile version, non-bank organizations and fintech companies will be connected to it, and loan terms will be disclosed with an indication of the total cost of financing.

Three product initiatives relate to pre-export financing, the expansion of the line of financial products, and the development of international factoring. Together with commercial banks, it is planned to develop products with seasonal repayment schedules, revolving credit lines for working capital replenishment, financing secured by equipment and inventories, as well as collateral-free products for businesses.

To support international factoring, the Ministry of Investments, Industry, and Trade will establish a guarantee organization under JSC "Trade Development Company". It will issue guarantees with recourse rights for an amount equivalent to up to 10 billion soums, but no more than 50% of the value of the factoring operation. Until January 1, 2029, the company will compensate 50% of the discount or accrued interest on international factoring up to 4% per annum. Together with the National Agency for Perspective Projects, a standardized insurance product with a simplified claim payout procedure in case of non-performance of obligations by a foreign debtor will be developed.

The document also contains data on the current state of the sector. According to the National Statistics Committee, as of January 1, 2026, out of 474.9 thousand operating enterprises and organizations, 403.8 thousand, or 85%, were small enterprises and micro-firms. As of July 1, 2026, the number of small business entities, taking into account individual entrepreneurs, dekhkan farms, and artisans, reached 1,236.1 thousand. These include 526.7 thousand micro-firms, 375.1 thousand individual entrepreneurs, 334.4 thousand dekhkan farms, 23.2 thousand artisans, and 5.1 thousand family enterprises.

In the first half of 2026, small business accounted for 50.5% of GDP, creating 518.7 trillion soums in value added. During this period, 44 thousand new small enterprises and micro-firms were opened. SME exports amounted to 7.48 billion dollars, or 47.2% of the country's total export volume, while imports totaled 13 billion dollars, or 51.8%. In 2025, about 74% of the labor force, or around 10.5 million people, was employed in the sector. The share of small business in GDP decreased from 53.8% in 2023 to 52.2% in 2025.

According to a World Bank assessment for 2025, 10% of small and 16% of medium-sized enterprises have access to loans. As of July 1, 2026, the loan portfolio of the banking system stood at 642.8 trillion soums, including 407 trillion soums in loans to legal entities. The volume of factoring services reached 5.2 trillion soums, including 0.6 trillion soums of international factoring. Active credit accounts are held by 24% of SME entities, while 68% are registered with the credit bureau. According to the World Bank, less than 30% of SME sales are conducted electronically. The World Bank estimates the demand for equity capital in Uzbekistan at 20–30 billion dollars, whereas the total liabilities of private equity funds operating in the country stand at about 2 billion dollars.

In 2026, on the instructions of the President, 140 trillion soums in loans are planned to be directed to support SMEs. In 37 economically lagging districts, loans under the family entrepreneurship program are issued at 12% instead of the standard 17.5%. In 562 makhallas of border and enclave territories, the maximum loan amount for projects is increased to 1 billion soums. An additional 2 trillion soums is allocated for family entrepreneurship programs over the planned 3.6 trillion soums.

In preparing the concept, the experience of the German KfW, the British Business Bank, India's SIDBI, and the Korea Credit Guarantee Fund (KODIT) was studied. The approaches of the Ministry of SMEs and Startups of the Republic of Korea, the Small and Medium Enterprise Agency under the Ministry of Economy, Trade and Industry of Japan, and the Ministry of Entrepreneurship, Microenterprises and Small Business of Brazil were also reviewed.