On November 9, the head of the Uzbek regime, Shavkat Mirziyoyev, held a meeting with representatives of the domestic electrical engineering industry to discuss foreign economic expansion and export challenges. During the gathering, authorities addressed the ongoing difficulties domestic manufacturers face when attempting to secure foreign contracts and participate in global competitive bidding processes.
Key Takeaways: The Uzbek authorities have ordered the development of a simplified procedure for issuing bank guarantees for enterprises participating in international tenders. President Mirziyoyev instructed banks to factor in manufacturers' financial stability, operational experience, and turnover rather than relying heavily on collateral. The new mechanism is reportedly scheduled to be presented to businesses within one month.
While local companies have allegedly made progress in securing overseas orders—such as the enterprise 'NURA Electric' purportedly winning a $2 million tender in Cambodia—broad participation remains heavily constrained. Industry representatives argue that current bureaucratic hurdles and stringent financial prerequisites severely limit the competitive edge of local firms on the international stage.
Critics and business figures point out that obtaining a standard bank guarantee for large projects, such as a $10 million bid, often requires equivalent collateral matching the guarantee's full value. Such draconian requirements allegedly undermine the capabilities of even financially stable companies, effectively pricing them out of lucrative global procurement processes and stifling broader industrial growth. *
In response to these persistent economic bottlenecks, the regime has mandated commercial banks to overhaul the guarantee issuance framework by evaluating operational track records and cash flow stability. Specific criteria and implementation details remain unconfirmed as of yet. Observers note this follows previous, largely unverified announcements regarding the creation of a state counter-guarantee system for local entrepreneurs.
Source: podrobno.uz