DUSHANBE, April 24, Asia-Plus — The government loan in an amount of 110 million somonis for funding the cotton sector has already been allotted to five banks of the country, Narzullo Habibulloyev, an official with the Ministry of Finance (MoF), said in an interview with Asia-Plus.
Additional 30 million somonis provided by the government in March have brought a total amount of the government loan to 140 million somonis, according to him.
Habibulloyev noted that the mentioned 140 million somonis have been provided to the banks at 12 percent annual interest, and the banks should provide loans to cotton-growing farms at not higher than 18 percent annual interest.
“The government loan has created favorable conditions for funding the cotton sector,” said Habibulloyev. “Cotton farmers should repay the first tranche of 110 million somonis by December 1 this year, and the remainder should be repaid before April 1, 2009.”
However, the funds provided by the government are enough to cover only 25 percent of the total expenses on the cotton harvest, the MoF official said. He added that the remaining 75 percent of expenses could be covered due to domestic resources, other banking resources and efficient forms of cooperation with service enterprises and organizations.
