Tashkent, Uzbekistan (UzDaily.com) -- The Senate of the Oliy Majlis at the 16th plenary session on 26 June amended the Law of the Republic of Uzbekistan "On the state budget for 2021". It was noted at the meeting that the implementation of decisions taken over the past period of the current year, the implementation of priority tasks and approved programs require additional sources of funding.

So, for the expenses of the Fund for Reconstruction and Development, the Law allocates an additional 6.4 trillion soums (previously - 13.4 trillion soums, now - 19.8 trillion soums). Of these funds, it is planned to allocate 550 billion soums to finance credit lines for projects for the production of finished leather goods, leather haberdashery products, as well as products with high added value from fur and wool.

The Fund for Reconstruction and Development of the Republic of Uzbekistan is a financial institution designed to ensure the implementation of projects for the modernization and technical re-equipment of the leading, primarily basic sectors of the economy, the achievement of a dynamic, sustainable and balanced socio-economic development of the country, as well as the implementation of an effective structural and investment policy.

According to the resolution of the President of the Republic of Uzbekistan No. PP-4982 from 8 February 2021 “On additional measures for the further development of the leather and footwear and fur and fur industries”, credit lines have been opened in commercial banks, the share of the state in the authorized capital of which is 50 percent or more, for a total amount of US$50 million for the implementation by the Fund for Reconstruction and Development of the Republic of Uzbekistan projects for the production of finished leather goods, leather goods, as well as fur and wool products with high added value in 2021-2022.

Loans are allocated to business entities for the purchase of modern new equipment and technologies for up to 7 years, including a two-year grace period with an interest rate of 6 percent per annum.

To obtain a loan, the business entities need an opinion issued by the Scientific and Technical Council of the Uzcharmsanoat Association. The Council carries out expertise and issuance of opinions on the feasibility study (business plan) of investment projects designed for the construction of new production facilities, reconstruction and modernization of existing enterprises for their feasibility, as well as an assessment of technical and technological solutions in conjunction with raw materials, and the compliance of projects with modern requirements.