Uzbekistan creates an Industrial Development Fund

Tashkent, Uzbekistan (UzDaily.com) -- An Industrial Development Fund is being created in Uzbekistan. President of Uzbekistan Shavkat Mirziyoyev signed a corresponding resolution.

A new fund is being created under the Fund for Reconstruction and Development of Uzbekistan (FRDU). The capital of the Industrial Development Fund will be US$1 billion. In 2023-2024, the FRDU will allocate US$200 million to the Industrial Development Fund (IDF).

Starting from 2024, the IDF will receive US$15 million from the state budget, the resolution says. The funds will be used to finance compensation.

According to the presidential decree, the IDF will promote the development of industry in Uzbekistan through establishing the production of new products, introducing new technologies and knowledge, as well as increasing labor efficiency.

The IDF will also help enterprises reduce production costs and export products with high added value.

The new fund will provide loans for projects worth more than US$4 million through commercial banks.

In particular, the fund will provide loans to launch the production of new products and expand production volumes. The loan will be provided for 10 years with a 3-year grace period. The loan rate in foreign currency will be 5% per year and in national currency – 10%.

Enterprises can receive a loan to purchase raw materials and replenish working capital. This loan is provided for 12 months. The loan rate in foreign currency will be 4% per year and in national currency - 10%.

The loan volume within the framework of one project can range from US$1 million to US$10 million. The project initiator’s share should be 30% of the project cost.