KULOB, Marc 10, 2009, Asia-Plus — The branch of Amonatbonk (Tajikistan’s savings bank) in Kulob that was going to begin providing cotton loans to local farmers today has failed to that for lack of money, Asia-Plus has learned from the head of Amonatbonk’s branch in Kulob Mahmadullo Rahmonov.
According to him, they have already received cotton loan applications from farming units in four cotton-growing districts of the Kulob region to this date for planting cotton on 6,884 hectares, which is 1,083 hectares more than last year. “We have applied for 17 million somoni for lending, however, we have not yet received the funds,” Rahmonov said.
He further added that last year, the Kulob branch was given an 8.222 million government credit for lending the cotton sector and 70 percent of that was already repaid.
Rahmonov considers that the main reason for delays in repaying loans is too short term determined for repayment of loans. Realization of raw cotton takes quite a lot of time. Besides, the fall in the international price of cotton and in demand for the product has hurt cotton farmers, he said.
“It is necessary to extend the term of loan repayments at least to 18 months instead of the present 12 months,” Rahmonov said.
