ANNOUNCEMENT 01 Jan 2009

In January 2009, the government of Uzbekistan announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE



The webpage of the Ministry of Foriegn Affairs. Available from < http://mfa.uz/eng/press_and_media_service/dates/110309_book/ >


Inception date: 01 Jan 2009 | Removal date: 01 Jan 2012
Still in force

Instrument unclear

A stimulus package entitled "Anti Crisis Action Programme 2009-2012" was introduced in January 2009. The programme includes support of the banking system, export companies as well as it creates incentives for export through preferential credit and tax rebates.
Documentation for the programme states: 
"the implementation of concrete measures to support the exporter-companies in ensuring their competitiveness at foreign markets given the rapid worsening of current conditions, creation of additional incentives for exports, in particular:

  • allotting them the privileged credits to replenish the circulation funds with a term of until 12 months on the rate which does not exceed 70 percent of the refinancing rate of the Central Bank;
  • prolonging until 2012 relieving the companies with foreign investments, which produce the finished goods, from levying all types of taxes and duties to the budget but for a value added tax;
  • restructuring the sum of overdue and current debts on the bank credits and writing off the penalty fees on the payments to budget, and rendering other no less important benefits and preferences." (see "THE GLOBAL FINANCIAL-ECONOMIC CRISIS, WAYS AND MEASURES TO OVERCOME IT IN THE CONDITIONS OF UZBEKISTAN" - information from Ministry of Foreign Affairs of Uzbekistan)

In addition, support for food and consumer goods producers is envisaged: 
"The programs adopted to stimulate the expansion of production of food and non-food consumer goods envision a broad system of incentives for the local producer-companies. In particular, for the period until January 1, 2012 the following types of tax and customs benefits are offered:

  • decreasing the single tax payment rate by 50 percent to micro-firms and small companies, which process meat and milk with a purposeful channeling of the released funds to undertaking a technical re-equipment and modernize production;
  • relieving companies, which produce particular types of finished non-food goods, from paying an income and property tax, single tax payment for micro-firms and small companies."

 
The sources of financing are going to be as follows: own financial assets of companies and enterprises for a total amount of 8.2 billion US dollars, credits of the Reconstruction and Development Fund of the Republic of Uzbekistan worth 2.5 billion dollars and foreign investments and credits totaling 13.5 billion dollars.
 
(Two years ago Uzbekistan established the Development and Reconstruction Fund with authorized capital, which now amounts to over 3.2billion US dollars. The Fund plays an important role in the implementation of strategic projects along structural transformation and modernization of the economy, as well as the establishment of the production infrastructure.)
 

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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