Uzbekistan receives a loan for the development of the agricultural sector
Tashkent, Uzbekistan (UzDaily.com) -- The International Fund for Agricultural Development issued a loan to Uzbekistan in the amount of USUS$46.2 million and a grant of USUS$800,000, which will be used to implement the project "Diversification and modernization of agriculture", the Dunyo news agency reported.
The loan agreement was signed on 4 August 2020. The total cost of the project is US$ 84.78 million. Uzbekistan’s contribution is US$ 38.28 million, including in the form of tax and customs benefits.
In accordance with the decree, within the framework of the project, goods (works, services) and vehicles purchased through a loan are exempt from customs payments (except for customs clearance fees), VAT and fees, and the income of non-resident individuals involved in its implementation, from personal income tax.
The funds raised will be used to allocate loans to finance agricultural diversification - US$ 39.8 million, to support youth and women - US$ 5 million, to the State Fund for Support of Entrepreneurship - US$ 4.5 million, to modernize irrigation systems - US$ 3.1 million, for the development of the system of knowledge, innovation and agricultural services in agriculture US$4.1 million.
The loan will be repaid in part through the return of the re-credited funds to commercial banks (US$ 35,325,000), the rest (US$ 10,875,000) - from the state budget of the country.
The Ministry of Agriculture will ensure the timely and complete implementation, the effectiveness of the project. The commercial banks participating in the project will manage the credit line, the development and targeted use of the loan, reporting and monitoring of the implementation of subprojects. The Accounts Chamber will control the targeted allocation and spending of funds and submit relevant information to the Presidential Administration every six months.
All foreign specialists involved in the project will be issued entry visas as well as multiple entry visas and temporary registration (with subsequent renewal) as soon as possible.