DUSHANBE, January 12, 2009, Asia-Plus — According to Safar Mahmadiyev, head of the economic policy and forecasting department within the Ministry of Agriculture (MoA), cotton farmers have repaid more than 35 million to the Tajik commercial banks to this date, which is 25 percent of state funds provided to cotton farmers in loans through banks last year for cotton harvesting.
In all, cotton farmers last year received 140 million somoni (equivalent to some 40 million US dollars) of state funds in loans through banks. The funds have been provided for cotton growing and harvesting campaign under new mechanism of financing to support the country’s cotton sector.
We will recall that the funds have been distributed among five banks of the country – Orienbonk, Agroinvestbonk, Tajprombank, Tojik Sodirot Bonk (TSB) and Amonatbonk (Tajikistan’s savings bank) — for provision of loans at annual interest rate of not higher than 18 percent.
The MoA official noted that the ministry applied to the government at the end of last year asking not to allow raising interest rate on cotton loans until farms realize their products.
The remaining part of loans is to be repaid by May this year when the whole cotton harvest is realized, Mahmadiyev said.
The ministry have sent six proposals to the government that, in particular, suggest that farms’ debts to the futures companies should be restructured till 2021. As of January 2009, cotton farmers have owed 488 million US dollars to their creditors, according Mahmadiyev. The ministry also proposes to liquidate farms’ debts of a total amount of 195 million somoni, Mahmadiyev said, noting that the ministry hoped that the government would support their proposals.
