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Uzbekistan will take new measures to support cotton-textile clusters
Measures will be taken in Uzbekistan to improve the financial condition of cotton and textile clusters. The Ministry of Justice reports this.
On July 22 of this year, a presidential decree was adopted on measures to improve the financial and economic condition of enterprises in the cotton growing sector.
For clusters that have fully repaid preferential loans for growing raw cotton in 2023 before December 1, 2024, the State Agricultural Support Fund will compensate interest payments on these loans (except for the bank margin) until January 1, 2025.
In addition, the deadline for repayment of the balance of preferential loans for growing raw cotton in 2023 will be extended until April 1, 2025, based on a positive conclusion from commercial banks.
From August 1, 2024, a mandatory personal guarantee of cluster founders will be introduced for loans issued by commercial banks at the expense of the Fund’s credit resources;
It will also be allowed to use cotton gins and cotton acceptance points purchased in installments and paid for 35% or more of the purchase price as collateral to attract a loan;
In addition, the deadlines for repayment of debt according to the payment schedules established in the contracts for the sale and purchase of property complexes of the abolished Uzpakhtasanoat will be extended by 1 year.
