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PRACTICE OF CREDITING SMALL BUSINESS IN UZBEKISTAN
N.S. Ernazarov, senior lecturer Tashkent institute of finance (Uzbekistan, Tashkent)
DOI: 10.24411/2411-0450-2019-10605
Abstract. This article explores the theoretical and practical aspects of lending to small businesses in Uzbekistan. This article based on the results of research, identified the problems associated with improving the practice of lending to small businesses by banks and the paper offers scientific recommendations that advance the crediting activities of small businesses through commercial banks.
Keywords: small business, private enterprise, loans, commercial banks, entrepreneurs, national currency, foreign currency.
A. Stakhnyuk's research studies have analyzed the increase in the degree of use of loans from commercial banks by small businesses and revealed the nature of the problems associated with this increase [1].
The problems noted by A. Stakhnyuk are based on the analysis of specific practical information and are therefore reliable. However, his conclusion on the insufficient development of the mechanism for supporting small business is not based on reliable facts.
The issuance of microcredits and work in small communities requires large expenditures, and the control of microcredit operations in such conditions on the part of the Central Bank does not cause the interests of commercial banks in issuing microcredits.
According to the conclusion of French economists, the establishment of mutually beneficial partnerships of small and medium-
As can be seen from the table, there is an increase in the size of loans and the share in the gross volume of loans issued by commercial banks of the Republic of Uzbekistan to small businesses. This indicates that lending to small businesses has become one of the priority areas of credit activity of banks and the process of lending is financed by the state.
sized enterprises with large enterprises increases the possibility of them obtaining loans from commercial banks. Since before cooperating with small and medium-sized enterprises, large enterprises analyze their compliance with market requirements. Also, a large enterprise constantly monitors the status of its partner, a small and medium-sized enterprise [2].
As you know, the main source of financing small businesses are loans from commercial banks. Therefore, in the Decree of the President of the Republic of Uzbekistan "On the Strategy for Action for the Further Development of the Republic of Uzbekistan" of February 7, 2017 No. PD-4947, it is noted that the most important condition for further strengthening macroeconomic stability and maintaining high growth private enterprise [3].
However, in 2017, the share of all loans provided to small businesses in the total volume of credit investments of commercial banks decreased significantly compared with 2016.
Along with this, we consider it expedient to assert that financial benefits applied to small businesses have a positive impact on the financing processes of their activities.
Table 1. The size and level of loans issued by commercial banks of the Republic of Uzbekistan [4]_
Indicators 01.01.2016 01.01.2017 01.01.2018
Loans to small businesses, billion soums 12 112 15 870 19 565
Share of loans provided to small businesses in the total volume of bank credit portfolio, % 28,4 29,7 17,7
In accordance with Article 356 of the Tax Code of the Republic of Uzbekistan, when micro-firms and small enterprises introduce into production new equipment and technologies small businesses, the tax base is reduced by 25% of their value. At the same time, the reduction of the taxable base is carried out during the 5 year tax period from the moment of the start of use of the process equipment.
Also, the adoption of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated May 5, 2016 No. 143 "On measures to organize the activities of the Center for analyzing the world market, investments and technologies in the National Bank for Foreign Economic Activity of the Republic of Uzbekistan". while increasing their export potential. Since one of the main tasks of the Center is a thorough analysis of the technological, advanced areas of developed countries and on the basis of this, the development of specific proposals for the implementation of investment projects in the real sectors of the domestic economy.
In Uzbekistan, by the Decree of the President, a special bank was created -Microcredit Bank for the provision of preferential financial services to small businesses. Microcreditbank, as a legal entity, is exempt from all types of taxes. In addition, the Government of Uzbekistan regularly raises the level of capitalization of the bank at the expense of the state budget.
Currently, Microcreditbank provides microleasing services at a preferential rate (5% per annum) to small businesses, which is important and plays a special role in financing their investment costs. The insignificant cost of investment projects of small businesses and their high degree of adaptation to market conditions increases the value of microleasing as a form of financing for their investments.
The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated May 19, 2000 No 195 "On additional measures to stimulate the participation of commercial banks in the development of small business" approved the procedure for lending at the expense of the Special Fund for Concessional Lending. This resolution defines the amount of interest on loans issued from the funds of
this fund, which is 50 percent of the Central Bank's refinancing rate.
These funds by commercial banks with interest in the amount not exceeding 50% of the refinancing rate of the Central Bank are fully aimed at financing investment projects. What created great opportunities for entrepreneurs to start and develop their activities.
If the entrepreneur does not have any property contributed as collateral, the practice of providing a guarantee and a mahalla committee at the place of residence of the entrepreneur as collateral is introduced. Also, the possibility of accepting equipment and property purchased at the expense of this loan as collateral for 80% of their value for this loan has been determined.
The practical significance of this innovation lies in the fact that a significant part of small business entities lack highly liquid collateral objects and this circumstance prevents an increase in the use of bank loans.
In countries with a low degree of financial security of the economy, collateral for loans is considered to be the most important way to prevent an increase in credit risk.
In addition, the terms of consideration by commercial banks of businessmen's applications for the allocation of loans, according to the statements of private entrepreneurs - 5 working days, according to the statements of small businesses with the status of a legal entity - 10 business days. This makes it possible to speed up the lending process and save the time of entrepreneurs.
It should be noted that at present in the republic there are some actual problems associated with improving the practice of lending to foreign trade activities of small business entities. One of these urgent problems is the lack of payment of documentary letters of credit of small businesses for imports through overdraft and term loans of commercial banks.
More than 90% of documentary letters of credit on import payments of small business entities opened by commercial banks of the republic accounted for covered documentary letters of credit, which makes it impossible to pay import payments on a letter of credit at the expense of loans from commercial banks. As in the secured letters of credit, the amount
of the letter of credit is withdrawn from the client's current currency accounts and deposited in separate settlement accounts.
One of the factors that have a negative impact on the foreign trade activities of small businesses is the high rate of devaluation of the national currency against foreign currencies.
To increase the possibility of repayment of loans issued in foreign currency to small businesses, it is necessary to ensure the
stability of their export earnings. For this, in our opinion, it is necessary to coordinate the rates of customs duties with the countries in which the bulk of exports of small businesses fall.
In our opinion, a special instruction should reflect the order of lending to small businesses in the form of overdraft and current account, ways to reduce credit risks arising, mechanism for paying interest on debit and credit balances of current accounts.
Библиографический список
1. Стахнюк А.В. Малый бизнес: проблема доступности кредитов // Деньги и кредит. -2010. - №3. - С. 25-26.
2. Chanel-Reynaud G., Bloy E. La Banque et le risqué PME. - Presses Universitaires de Lyon, 2001. - P. 39-40.
3. Decree of the President of the Republic of Uzbekistan "On the Strategy for Action for the Further Development of the Republic of Uzbekistan" of February 7, 2017 No. PD-4947. - Tashkent, 2017. - № 6 (766). - p. 32.
4. Monetary policy of the Republic of Uzbekistan. 2015-2018. www.cbu.uz.
ПРАКТИКА КРЕДИТОВАНИЯ МАЛОГО БИЗНЕСА В УЗБЕКИСТАНЕ
Н.С. Эрназаров, старший преподаватель Ташкентский финансовый институт (Узбекистан, г. Ташкент)
Аннотация. В данной статье рассматриваются теоретические и практические аспекты кредитования малого бизнеса в Узбекистане. В данной статье, основанной на результатах исследования, были выявлены проблемы, связанные с совершенствованием практики кредитования малого бизнеса банками, и в статье предлагаются научные рекомендации, которые способствуют кредитованию деятельности малого бизнеса через коммерческие банки.
Ключевые слова. малый бизнес, частное предпринимательство, кредиты, коммерческие банки, предприниматели, национальная валюта, иностранная валюта.
