Tashkent, Uzbekistan (UzDaily.com) — A new regulation on the procedure for financing the construction of new orchards in Uzbekistan using credit funds from the State Target Fund for the Development and Support of Agriculture and Industry has been approved by a Cabinet of Ministers' resolution.

Financing will be provided through commercial banks, with the participation of the Agency for the Development of Agriculture, which operates under the Ministry of Agriculture.

According to the document, entrepreneurs implementing projects in this sector will be able to receive loans for a term of seven years in the national currency. The interest rate on these loans will be the base rate of the Central Bank plus four percentage points. A three-year grace period is also provided.

Loans will be disbursed to borrowers in stages:

In the first stage, up to 10% of the total loan amount will be provided for land preparation for planting;

In the second stage, up to 40% will be allocated for the purchase and planting of seedlings;

In the third stage, up to 30% will be granted for the installation of irrigation systems;

In the fourth stage, the remaining 20% will be provided for up to three years for orchard maintenance until fruit-bearing begins.

It is important to note that loans will be granted proportionally to the area of land specified in the project's technical and economic justification, with the maximum financing amount not exceeding 500 sizes of the basic estimated value (BEVs) per hectare. Financing also covers projects for establishing vineyards as well as creating modern infrastructure for sorting, packaging, and processing products.