DUSHANBE, July 31, 2008, Asia-Plus — The Ministry of Finance (MoH) has provided the third tranche of 10 million somonis of government’s funds to the savings bank, Amonatbonk, for loaning cotton-growing farms in the Khatlon and Sughd provinces.
According to Amonatbonk, this tranche will go to funding purchase of fuel, mineral fertilizers and agricultural machines. Khatlon and Sughd will get equal parts – 5 million somonis each, the source at Amonatbonk said.
We will recall that at the beginning of this year, the government passed a resolution on allocating 110 million somonis to a number of banks for providing loans to the cotton-growing farms. The funds were divided among five banks: Agroinvestbonk; Amonatbonk; TajPromBank; Orienbonk and Tojiksodirotbonk. Of this amount, 25 million somonis were intended for Amonatbonk.
Further 30 million somonis were allocated by the government in addition to 110 million somonis in March. Those 30 million somonis were divided among two banks – Amonatbonk and Agroinvestbonk. They received 15 million somonis each. 15 million somonis provided to Amonatbonk in late March brought a total amount of funds, provided by the government to the bank, to 40 million somonis.
Under government’s resolution the funds allocated to the banks should be provided in loans to cotton farmers at annual interest rate of not higher than 18 percent.
Amonatbonk provides loans to cotton-growing farms in 18 districts of the Sughd and Khatlon provinces at 12 percent annual interest.
In all, the bank has to date provided 30 million somonis in loans to 533 cotton farmers in Khatlon and Sughd.
