The government of Uzbekistan has reportedly established a new regulatory framework for issuing preferential loans aimed at expanding book cafes and bookstores across the country. While presented as a major cultural support initiative, critics suggest that the bureaucratic hurdles and stringent conditions attached to the funding may hinder actual implementation and accessibility for small business owners.

Under the newly adopted provisions, the State Target Fund for Youth Entrepreneurship Development will allegedly allocate loans totaling up to 1 billion soms per region. The financial backing is supposedly reserved for legal entities that manage to sell over 10,000 books per month. These loans are to be granted for a term of up to three years, featuring a six-month grace period and an interest rate set at 50 percent of the Central Bank's main benchmark rate.

To qualify for the loan, entrepreneurs are required to meet several rigid stipulations, including holding property rights or lease agreements for appropriate premises, maintaining a medium-or-higher credit rating verified by designated bureaus, and securing formal approval from the Fund's Council for their submitted business plans. Applications must be submitted through electronic systems or via mail alongside comprehensive expense estimates and sales verification documents.

Authorized expenditures using the allocated funds include purchasing or leasing facilities, carrying out infrastructural repairs, covering utility costs, and paying employee wages. This development follows earlier decrees signed by the country's leadership mandating the establishment of book outlets within shopping centers and organizing cultural festivals to boost reading habits.

Source: uznews.uz