Procedure for Financing the Establishment of New Orchards Approved
Uzbekistan
By Government Resolution No. 255, the Regulation "On financing the establishment of new orchards in the Republic through commercial banks using credit resources of the State Target Fund for the Development and Support of Agro-Industry under the Agency for Agro-Industry Development at the Ministry of Agriculture of the Republic of Uzbekistan" has been approved.
According to the Regulation, entrepreneurs implementing the projects will receive credit funds from commercial banks in national currency for a term of 7 years, with a 3-year grace period, at an interest rate 4 percentage points higher than the Central Bank's base rate.
Credit funds will be provided to the borrower in the following proportions:
Stage 1 – up to 10% of the preferential loan for land preparation;
Stage 2 – up to 40% of the preferential loan for purchasing and planting seedlings;
Stage 3 – up to 30% of the preferential loan for installation of irrigation systems;
Stage 4 – 20% of the preferential loan for maintenance costs until the orchard starts bearing fruit (3 years).
Preferential loans are allocated proportionally to the area of land specified in the project's feasibility study for establishing new orchards and vineyards, as well as for organizing modern sorting, packaging, and processing of fruit and grapes, but not exceeding
Credit funds will be provided to the borrower in the following proportions:
Stage 1 – up to 10% of the preferential loan for land preparation;
Stage 2 – up to 40% of the preferential loan for purchasing and planting seedlings;
Stage 3 – up to 30% of the preferential loan for installation of irrigation systems;
Stage 4 – 20% of the preferential loan for maintenance costs until the orchard starts bearing fruit (3 years).
Preferential loans are allocated proportionally to the area of land specified in the project's feasibility study for establishing new orchards and vineyards, as well as for organizing modern sorting, packaging, and processing of fruit and grapes, but not exceeding
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