BAKU, Azerbaijan, Sept. 17
By Klavdiya Romakayeva - Trend:
Borrowed funds will be used to provide loans to finance the diversification of agriculture in Uzbekistan, Trend reports citing UzA.uz information agency.
Based on the resolution of the President of Uzbekistan on the implementation of diversification and modernization of agriculture project with the participation of the International Fund for Agricultural Development, a loan agreement was signed to provide an additional loan for $46.2 million, as well as grant funds for $800,000.
As part of the project, goods (works, services) and vehicles purchased with a loan from the International Fund for Agricultural Development are exempt from customs payments (except for customs clearance fees), value-added tax, and other fees.
The income of non-residents of Uzbekistan, participating in the implementation of the project, is exempt from income tax.
Following the loan agreement, additional borrowed funds will be allocated for the provision of loans to finance the diversification of agriculture for $39.8 million.
At the same time, loans for $30.3 million are allocated to support clusters and cooperatives, as well as business entities that are their members, $5 million to support youth and women, and $4.5 million to the State Entrepreneurship Support Fund.
Also, borrowed funds of $3.1 million are directed to the modernization of irrigation systems. At the same time, $2 million is spent on water supply by drilling vertical wells and installing pumps on forest lands.
The Ministry of Agriculture will ensure the timely and full implementation of the tasks of managing the credit line, ensuring the timely development and targeted use of the loan from the International Fund for Agricultural Development,
Reporting and monitoring the implementation of subprojects are assigned to the commercial banks participating in the project.
The repayment of borrowed funds of the International Fund for Agricultural Development of $35 million is made at the expense of the State budget of Uzbekistan.
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