KHUJAND, June 1, 2009, Asia-Plus — The Sughd agriculture directorate head Bobojon Domulloyev considers that president’s edict obligating additional support for the agrarian sector will raise trust of banks in farming units.
According to him, agrarians have waited for such a decree since 2008. “It is connected with transition to a new system of financing of the cotton sector in the country,” said Domulloyev, “Banks have distrusted farming units and demanded documents certifying that previous investor will not recover debts from farms at the expense of the 2008 cotton harvests.” He considers that the decree will help solve that distrust problem.
“As of January 1, 2008, Sughd cotton farmers’ debts to local taxes services (32.6 million somoni), pension fund (17.3 million somoni), water economy directorate (32.9 million somoni) and electricity distributors (13.2 million somoni) totaled 96.2 million somoni,” said Domulloyev, ”Besides, local cotton farmers now owe 92 million U.S. dollars to their investors.”
Last year, banks gave 54.1 million somoni in loans to Sughd farming units and only 57.7 percent of that amount has been repaid by May 22, Domulloyev said.
