European Investment Bank provides credit line to Uzbek businesses

Business Materials 6 September 2021 17:23 (UTC +04:00)
European Investment Bank provides credit line to Uzbek businesses

BAKU, Azerbaijan, Sept. 6

By Fakhri Vakilov – Trend:

The Board of Directors of the European Investment Bank (EIB) approved a credit line to support entrepreneurs affected by the global pandemic in the amount of up to $100 million for a period of 15 years with a 5-year grace period in the form of revolving loans, Trend reports citing Uzbekistan’s Cabinet of Ministers.

The credit line is provided to the following commercial banks: Uzpromstroybank - $30 million; Microcreditbank - $35 million; Qishloq Qurilish Bank - $35 million

The Cabinet of Ministers adopted a resolution "On measures to implement the project Emergency support for businesses affected by the global coronavirus pandemic in Uzbekistan "with the participation of the European Investment Bank.

The document was adopted in accordance with the presidential decree "On measures to attract external assistance funds to support the population, budget, basic infrastructure and business entities during the coronavirus pandemic.

Among the requirements for loan recipients from the EIB funds - the maximum loan amount for each investment project is the equivalent of 12.5 million euros, the total cost of the project itself does not exceed 25 million euros.

According to the terms of the EIB, at least 30 percent of the funds allocated to participating banks should be directed to finance projects of women entrepreneurs.

Commercial banks are designated by the executive authorities and are responsible for the targeted and efficient use of loans financed by the EIB. Repayment of loans, interest, and other expenses will also be handled by the participating commercial banks.

The Agency for Enterprise Development under the Ministry of Economic Development and Poverty Reduction is the coordinating body for the project.

The schedule for receiving funds for the EIB project has been approved.


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