PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of March 19, 2020 No. UP-5969

About first-priority measures for mitigation of negative impact on industries of economy of koronavirusny pandemic and the global crisis phenomena

Unprecedented measures for fight against spread of koronavirusny infection, including by introduction of restrictions for movement of people and suspension of operations of the companies are on a global scale taken.

It caused sharp reducing production volumes and consumption in the largest economies, violation of global production chains and commercial intercourses, reduction of prices of primary goods and deterioration in environment in the world financial markets.

Economy of Uzbekistan, being part of global economic system, is also exposed to influence of the specified factors that requires acceptance of effective anticipatory measures on mitigation of their negative impact. Special attention needs to be paid to support and ensuring stability of such high-growth industries of economy of the republic as tourism, transport, the pharmaceutical and textile industry.

For the purpose of ensuring macroeconomic stability, smooth operation of industries and spheres of economy, stimulation of foreign economic activity, effective social support of the population during counteraction to spread of koronavirusny infection and other global risks, non-admission of sharp decrease in the income of the population of the country:

1. Create Anti-recessionary fund under the Ministry of Finance of the Republic of Uzbekistan (further - Anti-recessionary fund) without formation of legal entity of 10 trillion sum.

Determine the main directions of use of means of Anti-recessionary fund:

a) financing of actions for fight against spread of koronavirusny infection, including:

providing medical and other institutions with medicines and products of medical appointment, protective medicines and test systems necessary for fight against spread of koronavirusny infection;

covering of expenses on content on quarantine of persons subject to risk or being in contact with the infected persons;

allocation of additional resources for material stimulation of the health workers who are taking part in fight against spread of koronavirusny infection, expenses of sanitary and epidemiologic service of the republic for carrying out protective measures;

construction, repair, reconstruction and equipping of the medical and other institutions involved in actions for identification, prevention and treatment of infectious diseases;

b) support of entrepreneurship and employment of the population in the way:

expansions of provision by the State fund of support of development of business activity of the guarantee and compensation on covering of interest expenses on the credits issued first of all on production, purchase and realization of socially important consumer goods;

implementation of additional infrastructure projects in the regions of the republic directed to expansion of economic activity and employment, and also construction of engineering communications, first of all in small industrial zones;

c) expansion of social support of the population, including allocation of additional resources:

for strengthening of measures for support of needy families and increase in number of receivers of benefits, including through the Federation Council of labor unions of Uzbekistan;

To fund of social jobs under the Ministry of employment and employment relationships of the Republic of Uzbekistan for expansion of social jobs;

for the organization of the monocenters "Ishga Markhamat" and training centers, and also support of labor migrants by the organization of their professional and language training;

d) ensuring steady functioning of industries of economy by means of:

rendering measures of the state support to the strategic companies by allocation of non-interest budget advances on repayment of the loans attracted under the state guarantee of the Republic of Uzbekistan and also for implementation of first-priority expenses;

compensations of part of transportation expenses of the subjects of entrepreneurship performing foreign trade activity;

provisions of additional measures of support of industries and spheres of economy, the most subject to negative impact of spread of koronavirusny infection, and also commercial banks, in case of quality degradation of credit portfolio;

completions of the loss of income of the budget of the Republic of Karakalpakstan, local budgets of areas and the city of Tashkent in communication

with provision of delays on tax payment and decrease in entrepreneurial activity by provision of non-interest budget advances for a period of up to three years.

2. Determine sources of Anti-recessionary fund of means of the Government budget of the Republic of Uzbekistan, including at the expense of expense optimization, the soft credits of the international financial institutions and other sources which are not prohibited by the legislation.

To the Cabinet of Ministers of the Republic of Uzbekistan:

take measures for attraction in 2020 for support of the budget of external borrowings in amount to 1 billion US dollars at the expense of soft credits of the international financial institutions and other sources for the purpose of ensuring financing of the Government budget of the Republic of Uzbekistan and Anti-recessionary fund, and also additional resources for financing of measures for support of the companies of real production sector, exporters and commercial banks;

in two weeks to approve package of measures for research of uninvolved reserves by enhancement of tax and customs administration, to ensuring completeness of payment of the accrued taxes, reducing shadow economy and implementation of new effective forms of tax and customs administration.

To the Ministry of Finance of the Republic of Uzbekistan monthly to enter information on execution of complex measures and use of means of Anti-recessionary fund in Administration of the President of the Republic of Uzbekistan and the Cabinet of Ministers.

3. To the Ministry of Finance of the Republic of Uzbekistan till June 1, 2020 to make in the Cabinet of Ministers offers on refining of parameters of the Government budget of the Republic of Uzbekistan for 2020 taking into account the developing macroeconomic situation, and also:

creations of Anti-recessionary fund and increase in expenses on support of entrepreneurship and socially vulnerable segments of the population;

review together with the Ministry of investments and limiting foreign trade of the amount of the external state borrowings involved in 2020;

review together with the Ministry of Economy and Industry, the Ministry of investments and foreign trade of the Investing program with redirection of funds for implementation of the most priority infrastructure projects giving opportunities for development of entrepreneurship and employment of the population including carrying out engineering communications in small industrial zones;

harsh budget discipline with introduction of specific proposals on optimization and the termination of additional expenses.

4. Form the Republican anti-recessionary commission in structure according to appendix.

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