On November 9, the President of Uzbekistan Shavkat Mirziyoyev introduced a novel financial mechanism aimed at stimulating the domestic market for locally manufactured home appliances during a meeting with representatives of the electrical engineering industry, business leaders, and investors. According to the press secretary of the head of state, Sherzod Asadov, the initiative is designed to bolster domestic manufacturing while expanding consumer purchasing power.
Key Takeaways: Commercial banks are expected to provide consumer loans at an annual interest rate of 18% specifically for purchasing locally made refrigerators, washing machines, and air conditioners. Over the past decade, the electrical industry has attracted $2 billion in investments, with production volumes reaching 50 trillion soms.
The proposed mechanism seeks to simultaneously enhance family access to modern household appliances and boost sales figures for domestic enterprises. Official reports indicate that the sector has commissioned 413 new production facilities over the last ten years, pushing export revenues to $1.6 billion. For context, production volume stood at a mere 1.7 trillion soms back in 2016, highlighting the sector's substantial growth trajectory amid aggressive state-backed industrial policies.
During the briefing, the president instructed responsible officials to finalize comprehensive calculations within a two-week timeframe and submit concrete proposals on allocating affordable financial resources to commercial banks to jumpstart the program. However, critical details such as the specific funding sources for the banks, maximum loan limits, repayment terms, borrower eligibility criteria, and the official launch date remain undisclosed.
Looking ahead, authorities intend to advance industrial expansion further, scheduling an additional 19 investment projects worth a total of $600 million in the home appliance sector over the next three years. Observers note that the practical implementation of these measures will heavily rely on macroeconomic stability and bank liquidity management.
Source: www.gazeta.uz