Uzbekistan allocate $100M for entrepreneurship development in Tajiistan
By Kamila Aliyeva
Uzbekistan will allocate $100 million for the development of entrepreneurship in Tajiistan, Avesta reported.
The funds will be distributed among three Tajik banks - Amonatbank, Orienbonkom and Eskhata, chairman of the Amonatbonk Rukhullo Hakimzoda said at a meeting with journalists.
The funds distributed between these banks will be given to Tajik entrepreneurs as a loan at 8 percent per annum if the loan is taken for one year and 9 percent per annum if the loan matures in one to three years, he noted.
Entrepreneurs should use the money to import goods from Uzbekistan and realize them on the territory of Tajikistan, according to the agreement.
To date, 12 Tajik companies have expressed interest in receiving this loan for a total of $ 19.9 million, whose applications are to be considered.
In March 2018, the Tajik state bank, Amonatbank, and the National Bank for Foreign Economic Activity of Uzbekistan signed an agreement on cooperation in the field of trade finance, which provides financing for transactions related to the export of goods and services from Uzbekistan to Tajikistan.
Earlier, Tashkent expressed its intention to allocate $ 100 million to support Tajik entrepreneurs. Within the framework of this credit line, it is planned to increase the volume of export of goods from Uzbekistan for their sale in Tajikistan, which Tajik businessmen will be engaged in.
Ruhullo Hakimzoda also said that, in addition to Uzbekistan, to develop business in Tajikistan, funds in the amount of 60 million yuan will be allocated by China. They will be directed to Amonatbank, which, in turn, will give them to Tajik entrepreneurs as a loan at preferential interest rates for up to five years.
The loan in yuan will have a targeted use, that is, the loan issued in Chinese national currency should be used only in China. In addition, such a loan will be used for import substitution. The loan will be used to purchase production and technological equipment. The term of the loan will be 3-5 years.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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