Uzpromstroybank finances projects for US$390m in agriculture sector
Tashkent, Uzbekistan (UzDaily.com) – Uzpromstroybank, under the guarantee of the government, has financed 429 projects in the fruit and vegetable and livestock sectors with a total value of US$390.25 million.
In our country, large-scale work is being carried out in order to strengthen food security, in particular, to meet the needs of the population for basic types of food, to create a reserve, as well as to ensure that prices and quality are matched in this direction.
In the resolution of the President of Uzbekistan from 1 May 2020 “On additional measures to ensure food security, rational use of available resources, state support for agriculture during the coronavirus pandemic”, a number of tasks are defined aimed at introducing modern approaches in the field.
In the system of Uzpromstroybank, work in this direction is carried out within the framework of state programs. The bank has financed 429 projects in the fruit and vegetable and livestock sector with a total value of US$390.25 million. For this purpose, credit lines from the Asian Development Bank, the International Development Association, the International Bank for Reconstruction and Development, and the Japan International Cooperation Agency were attracted.
It should be noted that according to the above resolution of the head of our state, separate preferences are provided for the subjects of the sphere in the banking and tax systems. In particular, commercial banks provide foreign credit lines for a period of 10 years with a grace period of 3 to 5 years. Producers of agricultural goods are exempt from tax on profits received from the sale of their products, they are provided with benefits in accordance with the procedure established by law for the use of drip irrigation systems for water use.
The State Customs Committee has organized a permanent headquarters for the loading of products in a pandemic, facilitating transportation across the border. There, measures are promptly resolved on the import and delivery of seeds to the sites for sowing in the aisles of orchards and vineyards, in crop rotation areas.
Such preferences, in turn, serve as an important factor in the continuous supply of agricultural products to the population and ensuring price stability in the food industry.
Currently, the bank has directed credit lines of the Asian Development Bank, the International Bank for Reconstruction and Development, and the Japan International Cooperation Agency (JICA) for only 196 projects in the fruit and vegetable industry in the amount of US$138.96 million, resulting in the creation of 2,425 jobs.
In the livestock industry, credit lines of the Asian Development Bank and the International Development Association in the amount of US$26.0 million were attracted for 54 projects, due to which more than 570 jobs were created in remote regions.
Also, among the projects there are business plans aimed at modernizing the production capacities of large industrial enterprises and business entities operating in agriculture through energy-saving and environmentally sustainable technologies.
For such projects, the bank attracted credit lines from the International Bank for Reconstruction and Development and the International Development Association in the amount of US$219.24 million, and to support agricultural enterprises, the International Development Association loans in the amount of US$6.05 million, which were directed to finance dozens of more projects.
Thus, as a result of the launch of these projects, about 4150 new jobs have been created in the republic, products worth 4.6 trillion soums have been produced. Favorable conditions have been created for the guaranteed provision of the population with the main types of food products, the systematic organization of the supply of products to the domestic consumer market and the strengthening of food security.