Bank investments are instrumental in the sustainable development of the economic system. Currently, banks in Uzbekistan closely associate their independent development strategy with growth of the real economy. In its turn, that creates conditions for the expansion of production, implementation of the investment projects that are focused on the manufacture of new, competitive products.
In the years of independence, the banking system has turned into an important mechanism for development of national economy, establishment of production processes at the level of international standards, and filling the consumer market with quality products. In current market conditions, it has ensured the accumulation of free funds of individuals and entities, their inter-sector reallocation, as well as national and international payment relations between different economic entities.
Over the past decade, the average annual growth rate of lending to business has been at 30%, and generally grew up by 29 times, and micro-credit rates scaled up by 56 times. In the first nine months of the current year alone, the volume of credits allocated by commercial banks to small businesses has increased by 1.3 times and amounted to 12.6 trillion soums.
Mechanisms of loaning have been simplified and streamlined. Representatives of the private sector have been provided with certain benefits and preferences for banking services. For example, a specific mechanism now ensures full financial support for farming enterprises and economies through preferential loans. The mechanism has empowered a transition to the system of preferential crediting by commercial banks to cover the expenditures for growing agricultural products through the procurement and processing enterprises.
Bank investments have been an increasingly important motivating factor in agriculture, as proved by the fact that cotton-growing and grain-growing farms are annually allocated an average of 2.4 trillion soums of loans, and 254 billion soums is envisaged for the development of cattle breeding. 217 billion soums is allocated for the laying intensive gardens, development of beekeeping, poultry and fish farming. Other branches are covered by preferential loans of 329 billion soums, and 160 billion soums of credit funds are channeled in strengthening the logistical capacity of farms. These measures have been contributing to the transformation of farms into a leading force in agriculture, increase in production volumes, and creation of additional opportunities for building industry in rural areas.
