Qishloq Qurilish Bank will be transformed into a Business Development Bank, announced today at a meeting with business leaders by Shavkat Mirziyoyev. According to him, the bank will provide cheap loans, help with training, facilitate doing business and become a partner for small businesses.

The financing mechanisms and methods of operation of the new bank will be "absolutely new," the president said.

In particular, small business centers will be set up at the bank in each of the 14 provinces.

The centers should help businesses develop business projects, train people who want to start a new project at their own expense, attract the necessary specialists to new projects, provide accounting, tax, audit, marketing, legal and other consulting services for businesses.

A business leader will contribute a 10% stake in small business project, the bank will contribute 45%, and the state will allocate the remaining 45% as credit resources, he said. Loans will be provided to businesses for a period of 5-7 years on favorable terms. Credit lines for $150 million of these funds will be opened from October 1.

The self-employed with a clean "credit and tax history" will receive a 50 percent reduction in the collateral requirement for a loan to take their business to the next level.

The centers will also cover the cost of equipment insurance, certification of raw materials and materials imported under the project.

Small companies participating in the program are not subject to verification for three years, the head of state said.

Shavkat Mirziyoyev noted that for this purpose, the bank had to raise $500 million, and the state will provide another $500 million.