The key facts

  • Loans of up to 1 billion soums per territory, a term of up to three years with a six-month grace period, at a rate of 50% of the Central Bank's base rate
  • Conditions include selling more than 10,000 books per month and having premises
  • The measure continues the July presidential resolution on bookstores in shopping malls and book streets

Financing procedure approved

The Cabinet of Ministers has approved by resolution the procedure for providing loans to expand the activities of book cafes (Book cafe) and bookstores, UzNews.uz reports. The funds will be issued by the State Target Fund for the Development of Youth Entrepreneurship in a total amount of up to 1 billion soums per territory.

Loan terms and parameters

Financing is provided for legal entities selling more than 10,000 books per month. Loans are granted for a term of up to three years with a six-month grace period at a rate of 50% of the Central Bank's base rate. The applicant must have premises (fully or partially) under ownership, lease, or free use, intended for expanding a book cafe or bookstore, as well as a credit history of medium or higher level according to the credit bureau 'Credit Information Analytical Center'. The project's business plan must be approved by the Fund's Council.

How to obtain funds and what they can be spent on

An application is submitted to the Fund by mail or through electronic information systems, indicating the organization's TIN and the requested amount. The application must be accompanied by a document confirming the sale of more than 10,000 books per month, an expansion business plan, and a cost estimate. After the project is approved, the Fund's Council makes a financing decision, the Fund concludes a loan agreement, as well as guarantee or collateral agreements depending on the security. The funds may be used for the purchase or lease of buildings, renovation and equipping of premises, utilities, payments under employment and civil law contracts, and other expenses related to the operation of a book cafe or bookstore.

Context of the July measures

The measure continues the policy of supporting the book sector: in July the president signed a resolutionproviding for the mandatory opening of bookstores in shopping malls, the creation of round-the-clock book streets, and the holding of the Tashkent Book Fest festival. These steps are aimed at popularizing reading among the population. The new loans differ from the July measures in nature: while the latter concerned organizational requirements and events, there is now a specific financial instrument with defined selection criteria — a sales threshold, requirements for premises, and credit history.