Uzbekistan, Tashkent, Aug. 6 / Trend D.Azizov /
Germany's Kreditanstalt fuer Wiederaufbau (KfW) has opened for the Uzbek Ipak Yuli bank a credit line of 6.15 million euro for lending to small businesses and private entrepreneurship, a source in government circles told Trend on Monday.
The funds have been provided under a credit line of 18.8 million euro provided by KfW in December 2009 in accordance with an Uzbek-German intergovernmental agreement on financial cooperation.
The credit line's funds are guaranteed by the government for 40 years, including a 10-year grace period, with an interest rate of 0.75 percent per annum.
The credit line's funds will be provided to select commercial banks for 12 years, including a three-year grace period.
The maximum amount of credit extended to small business for the replenishment of working and the acquisition of fixed assets will be 200,000 euro. Microloans to individual entrepreneurs and dehkan farms without a legal entity will be provided in cash at up to 10,000 euro.
To date, the total amount of funds allocated by the government through KfW since 1993 on projects to develop small and private businesses, transport and telecommunications, food processing, agricultural engineering, social services, education and health has amounted to 300
million euro.
The Ipak Yuli Bank was created in 1990.
The official exchange rate is 1904.90 soums to $ 1 on Aug. 6.