DUSHANBE, April 15, Asia-Plus — Inflation will not affect lending and return of loans provided to cotton-rowing farms, Mahmadamin Mahmadaminov, the head of Amonatbonk (Tajikistan’s savings bank), said in an interview with Asia-Plus.
“The loans are provided and repaid in the national currency, the somoni, only,” the Amonatbonk head said.
Commenting on the cotton sector lending situation, Mr. Mahmadaminov said that Amonatbonk had opened 499 agencies for providing loans to farming units and individual entrepreneurs in many villages.
We will recall that 30 million somonis (TJS) provided by the government in addition to 110 million somonis to fund the cotton sector have been divided among two banks – Amonatbonk (Tajikistan’s savings bank) and Agroinvestbonk. They have received 15 million somonis (equivalent some $4.4 million) each.
Of 110 million somonis provided by the government at the beginning of the year already, the bank received 25 million somonis. These funds have been provided in loans to cotton-growing farms in 18 districts of the Sughd and Khatlon provinces at 12 percent annual interest.
15 million somonis provided to the bank in late March brought a total amount of funds, provided by the government to the bank, to 40 million somonis. In all, the bank has to date provided 30 million somonis in loans to 554 cotton farmers in Khatlon and Sughd. The remaining 15 million somonis will be provided to farming units in August-September.
On the preferential lending system introduced in remote mountain areas, the Amonatbonk head said that the system had demonstrated its value in practice. “More than 5,000 people have used this service so far and there have been no any problems with the return of loans,” Mahmadaminov said, noting that Amonatbonk currently serves 3,152 federally budgeted and 4,758 non-budget organizations.
