Line of credit

GUIDE FOR FARMERS AND AGRICULTURAL ENTERPRISES ON ACCESSING CREDIT FINANCING FROM THE FRENCH DEVELOPMENT AGENCY (AFD)

“Financing Sustainable Livestock Development” Project Supported by the French Development Agency

Legal Basis: The project is implemented in accordance with Resolution No. 84 of the President of the Republic of Uzbekistan, dated 13 January 2022.

Credit financing is available for projects related to livestock production in the following areas:

  • Ruminant livestock (cattle, sheep, goats, horses, camels);
  • Poultry farming;
  • Fish farming (aquaculture);
  • Beekeeping;
  • Rabbit farming;
  • Introduction of drip irrigation technologies for livestock grazing lands;
  • Modern reconstruction, expansion, or construction of poultry houses (including wooden structures, wall cladding, and timber-frame buildings);
  • Installation of solar panels for livestock farms;
  • Production of animal feed;
  • Milk processing;
  • Meat processing;
  • Processing, packaging, and storage of livestock products;
  • Purchase of veterinary equipment and supplies, as well as provision of veterinary services;
  • Working capital financing for livestock-related projects;
  • Purchase of agricultural machinery, technologies, and equipment required for livestock development, including feed production equipment;
  • Other livestock-related activities, including the acquisition of water- and energy-saving technologies.

Project Coverage

The project is implemented throughout the Republic of Karakalpakstan and all regions of Uzbekistan.

Credit Resources Allocated to Participating Commercial Banks

  • Xalq Banki – 40.0 million euros
  • Microkreditbank – 27.0 million euros
  • Business Development Bank – 12.9 million euros
  • Hamkorbank – 10.0 million euros

Total credit line: 89.9 million euros

Loans are provided in the national currency of the Republic of Uzbekistan (UZS).
The annual interest rate is equal to the current policy (base) interest rate of the Central Bank of the Republic of Uzbekistan.

The financing consists of two credit lines:

  • Credit Line 1: 65.9 million euros
  • Credit Line 2: 24.0 million euros

Maximum loan amount per borrower:

  • Credit Line 1: up to 1 million euros (equivalent in UZS);
  • Credit Line 2: up to 100,000 euros (equivalent in UZS).

Project Applicants

Project applicants may include private organizations, small and medium-sized enterprises (SMEs), dehkan and household farms, farmer enterprises, family businesses, limited liability companies (LLCs), and individual entrepreneurs.

To apply for loan financing, project applicants must submit the following documents to a participating commercial bank:

  • Loan application form;
  • Company registration certificate and founding documents;
  • Environmental expert assessment issued by the district environmental authority;
  • Environmental Impact Assessment (EIA) report;
  • Copy of the company’s balance sheet and financial statements;
  • Copy of the contract signed with foreign or domestic suppliers for the purchase of goods or services;
  • At least three commercial quotations for the goods or services to be purchased;
  • Business plan;
  • Collateral covering at least 125% of the loan amount;
  • Documents confirming land use and property ownership rights (Hokim’s decision or lease agreement);
  • Contracts for the collection and disposal of household and industrial solid and liquid waste;
  • Water use permit, well-drilling permit, or relevant agreements;
  • Depending on the nature of the project, participating commercial banks may request additional supporting documents.

Loan Application Procedure

Step 1
Agricultural enterprises, livestock farms, dehkan farms, farmers, or entrepreneurs submit the required application package to the regional branch of a participating commercial bank.

Step 2
The regional branch (district or regional level) reviews the submitted documents and forwards them to the bank’s Head Office for consideration and approval by the Credit Committee.

Step 3
Following a positive decision by the Credit Committee, the Head Office submits the project documentation to the Project Implementation Group (PIG) for financing approval.

Step 4
The Project Implementation Group reviews the submitted documents for compliance with the requirements of the French Development Agency (AFD). Upon issuing a positive conclusion, the PIG grants its approval to the commercial bank for financing the project.

For Further Information

Project Implementation Group of the “Financing Sustainable Livestock Development” Project, implemented with the participation of the French Development Agency (AFD) under The Agency for the Development of Livestock and Pasture Economy.

                                                                      Address:

22 Kushbegi Street, Yakkasaray District, Tashkent, Uzbekistan
Tel.: +998 90 951 31 18 and +998 90 926 03 30