Turkmen farmers to receive preferential credits
Turkmenistan, Ashgabat, Mar. 7 / Trend H. Hasanov /
According to the decree of Turkmen President Gurbanguly Berdimuhamedov, local farmers will receive preferential credits for the purchase of technology and implementation of investment projects.
Authorised banks will allocate credit lines for farmers' associations, daikhan farms, agricultural corporations, mulkdars (private landowners), tenants and agricultural research institutes.
Loans for 10 years with an annual interest rate of one per cent will be allocated for the purchase of agricultural machinery, tools, equipment, water saving technology, equipment and an irrigation water supply system on condition of an annual return of equal shares on the basis of their operational lifespan.
Credits to finance investment projects related to the development of animal husbandry and agriculture, production and processing of agricultural products and provision of services, as well as the purchase of fixed assets and property will be allocated for the same term with an annual interest rate of five per cent.
The corresponding decree was signed in the frames of a successful implementation of the programme on socio-economic development for 2012-2016 and financial support to agricultural producers.
It is noted that preferential credits will promote innovation in agriculture, introduction of modern technologies and best practices that enhance soil fertility, improvement of social and living conditions of rural population, as well as create new jobs.
The Central Bank of the country is charged with responsibility to develop the scheme within a period of one month and adopt a procedure for issuing preferential credits.
Turkmenistan grows cotton, wheat, rice and sugar beet.