WB to provide Uzbekistan with $40 mln loan to support agricultural enterprises

Business Materials 12 September 2012 18:44 (UTC +04:00)

Uzbekistan, Tashkent, Sept. 12 / Trend D.Azizov /

World Bank Board approved the allocation to Uzbekistan of a loan of $ 40 million as additional financing for the second project to support agricultural enterprises.

"The project will help farmers increase productivity, improve their financial and environmental sustainability, and profitability of agricultural businesses," the WB said on Wednesday.

An additional loan will be given to Uzbekistan at the expense of the International Development Agency (IDA is part of the World Bank). Funds will be allocated to finance the farmers and replenish their working capital through local financial institutions.

World Bank allocated to Uzbekistan a loan of $67.96 million for the second phase of the project to support agricultural enterprises in 2008.

The loan has been allocated from the IDA for a period of 40 years, including a 10-year grace period, at a rate of 0.75 percent per annum.

The project worth $74.76 million provides for increasing productivity, financial and environmental sustainability, rehabilitation of irrigation and drainage systems, improving governance in newly established farms and agribusiness enterprises in 90 districts of seven regions of Uzbekistan.