Farmers and entrepreneurs in Syrdarya Region presented with opportunities to receive grants of up to 40,000 euros

On October 15, a seminar was held in Gulistan, Syrdarya Region, as part of the Financing Sustainable Development of the Livestock Sector project, implemented with the participation of the French Development Agency (AFD).

At the event, farmers and entrepreneurs from Syrdarya Region were introduced to the terms of concessional lending, the eligible uses of funds, and opportunities to receive non-repayable grants of up to 40,000 euros funded by the European Union.

Under the project’s first credit line, medium-sized and large farms can receive loans of up to 1 million euros, while the second credit line provides loans of up to 100,000 euros for small-scale farmers and entrepreneurs. Investment loans are offered at an annual interest rate of 10%, for terms of up to 10 years, with a grace period of up to three years.

According to Umirbek Abdullayev, a credit line specialist, entrepreneurs who receive loans of up to 100,000 euros and meet the established requirements are eligible for non-repayable grants funded by the European Union, covering up to 30% of the loan amount. For certain categories of applicants who meet additional criteria, this rate can increase to 40%.

To qualify for a grant, an entrepreneur must:

• Have received a loan of up to 100,000 euros under the project;
• Use the funds for their designated purpose;
• Substantiate purchases with the relevant documentation;
• Have no overdue loan repayments;
• Meet climate compatibility requirements.

Loan funds may be used for cattle farming, poultry farming, fish farming, beekeeping, fodder production, and the processing of livestock products. Financing is also available for purchasing modern equipment, installing solar panels, improving irrigation systems, and replacing outdated machinery.

Grants are not disbursed immediately after a loan is issued. They are provided only after the targeted use of the funds has been verified. Grants are not available for the direct purchase of cattle or small ruminants.

Financing is provided through Xalq Banki, Microcreditbank, the Business Development Bank, and Hamkorbank.

During the seminar, farmers raised questions about collateral valuation and the requirement to contribute 30% of a project’s cost from their own funds. According to the experts, an entrepreneur’s existing buildings and structures, machinery, and other assets may also count towards their contribution. The final decision on collateral eligibility is made by the banks.

For reference, the project has a total value of 147 million euros. Of this amount, 100 million euros is provided by the French Development Agency. The European Union has allocated an additional 11.5 million euros in grant funding.

The project aims to expand farmers’ access to finance, introduce modern technologies into the livestock sector, and improve production efficiency.