President Shavkat Mirziyoyev of Uzbekistan has reviewed a presentation on measures to fundamentally improve the institution of insolvency. The reform aims to create a system that helps enterprises recover from crises rather than merely declaring them bankrupt. The President emphasized that despite the dynamic growth of the private sector, whose share in the country's economy has increased to 58% over the past five years, systemic gaps persist in the rehabilitation of troubled assets.
A critical analysis revealed that current rehabilitation mechanisms are ineffective: out of 68 enterprises that underwent recovery procedures in the last five years, only seven managed to resume operations. There is a trend toward the official liquidation of small enterprises instead of preserving and returning them to economic activity. To address this, it is proposed to establish an Agency for Insolvency Affairs under the Ministry of Justice.
The new structure will be responsible for implementing a unified state policy in this area and coordinating measures to eliminate bankruptcy factors at early stages. Concurrently, the creation of a Chamber of Judicial Managers is planned, which will handle issues of professional ethics, specialist training, and protection of their rights, aiming to solve the personnel shortage in the industry.
The reform introduces specific tools to assist enterprises in difficult situations. In particular, the National Business Guarantee Company will begin providing sureties for small and medium-sized entities, and preferential credit lines will be opened through the Entrepreneurship Development Company. A key innovation will be the possibility of deferring payments on principal debt and interest until the completion of the rehabilitation procedure, with subsequent repayment within three years.
Special attention is paid to simplifying debt restructuring procedures. District and city Councils of People's Deputies will gain the authority to allow entrepreneurs to pay taxes in installments or with deferrals. Tax authorities will also be able to apply similar mechanisms based on collateral, bank guarantees, or insurance policies. The entire process—from filing an insolvency application to completing procedures—is planned to be transferred to an electronic format.
The implementation of a unified digital platform will enable the maintenance of open registers of enterprises undergoing rehabilitation and judicial managers. Free access to this data for the public and media is intended to ensure transparency of processes and eliminate cases of fictitious bankruptcy. In conclusion, the head of state stressed that support for entrepreneurship should not be limited to creating new entities; the government's most important task will be to preserve existing businesses and provide timely assistance to those temporarily facing financial difficulties.
Source: podrobno.uz