Uzbekistan, South Korea boost co-op
Foundation support for exports of small businesses and private entrepreneurship in Uzbekistan (EPF) and the Korea International Trade Association (KITA) signed a Memorandum of Understanding to facilitate the establishment of business cooperation between entrepreneurs of Uzbekistan and South Korea on February 27.
The document was signed by Acting Director of EPF Zhakhongir Mustafayev and Vice President KITA Ang Hyun-ho following the Uzbek- Korean business forum held in Tashkent.
FEA was founded in August, 2013. The initial size of the fund is defined as 5 billion soums, out of which 2.5 billion soums is formed by a contribution from the state budget, and the remaining part by voluntary contributions of founders of small businesses and private entrepreneurship, NBU FEA, the Chamber of Commerce and as well as other commercial banks, financial institutions and donors.
The main objectives of the fund are defined gratuitous financial assistance to small businesses and private entrepreneurship, farmers for the development of export-oriented production of local brands, promoting exports, including licensing fees, permits, certificates, as well as registration fees and other payments related to the participation of small businesses and entrepreneurship in international tenders.
The fund will be exempt from all taxes, levies, duties and mandatory contributions to state funds, except for the single social payment until January 1, 2019.
Small businesses have the right to implement export of goods and services in foreign currency without advance payment through the fund, opening of letter of credit or guarantee with the term of receipt of proceeds, or re-importation within 180 days with a policy of export insurance contract issued in due course.
Today the fund has contributed to 120 local companies in promoting their products for export amounting to $38.7 million. The fund plans to invest $ 580 million for support of exports of 370 small businesses in Uzbekistan in 2014.