Tashkent, Uzbekistan, Aug. 11
By Demir Azizov – Trend:
The Fund for Reconstruction and Development of Uzbekistan (FRDU) will open a credit line for commercial banks of the country in the total amount of $50 million to co-finance import contracts concluded as part of investment projects on building modern hotels, recreation areas, recreational complexes and other tourist infrastructure facilities, implemented by business entities in the tourism industry.
This is stipulated by the recently adopted decree of Uzbekistan’s President Shavkat Mirziyoyev “On Measures to Expand the Sources of Financing Investment Projects for the Creation of Modern Tourism and Recreational Complexes in the Tashkent Region”.
The FRDU was instructed to ensure, within a month, the opening of targeted credit lines to authorized commercial banks of the country in order to allocate loans to business entities of the tourism industry.
The document envisages that the loans will be issued for a period of up to 10 years, including a grace period of up to three years, at a six-month LIBOR [The London Interbank Offered Rate] rate plus two percent per year and a refinancing bank margin of 0.5 percent per year.
The share of co-financing by the FRDU-allocated targeted credit lines is up to 50 percent of the project cost and no more than $10 million per investment project.
The loan is granted solely on the basis of decisions made by the authorized commercial banks on the economic and financial feasibility of implementing an investment project among those included in the development program of the Tashkent region’s tourism industry.
The Fund for Reconstruction and Development of Uzbekistan was created in 2006 to finance and co-finance projects included in the state investment program.