A Presidential Decree “On Measures to Improve the Financial and Economic Status of Enterprises in the Cotton Industry” was signed.
According to the Decree, the following measures are outlined to financially rehabilitate cotton-textile clusters:
Clusters that fully repay the concessional loans provided by commercial banks for cotton cultivation in 2023 using funds from the State Support Fund for Agriculture by 1 December 2024, will have the interest payments on these loans (excluding the bank’s margin) refunded by the Fund until 1 January 2025.
The repayment period for the remaining concessional loans allocated to clusters for cotton cultivation in 2023 will be extended until 1 April 2025, based on a positive assessment from commercial banks.
From 1 August 2024, additional personal guarantees from the founders of the clusters will be required for loans provided by commercial banks using funds from the Fund.
The provision of cotton ginning factories and cotton reception points, acquired on an installment payment basis with at least 35 percent of the purchase price paid, as collateral for the attracted loan, will be allowed.
The repayment terms for debts according to the payment schedules outlined in the purchase agreements with the clusters for the acquisition of property complexes of the abolished JSC “Uzpakhtasanoat” will be extended by one year.
