FRDU to provide US$50m to implementation of investment projects in Tashkent region

Tashkent, Uzbekistan (UzDaily.com) -- On 10 August 2017, President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to expand the sources of financing of the investment projects for creation of modern tourist and recreational facilities in Tashkent region”.

The document was adopted to use existing tourist potential of Tashkent region in the most complete and effective way, accelerate formation of a modern tourist infrastructure by creating facilities, which meet modern world standards, needs and requirements of tourists, organization of new jobs and increase income of the population.

Uzbek President approved a proposal on opening a credit line of the Fund for Reconstruction and Development of Uzbekistan (FRDU) for US$50 million for co-financing import contracts, concluded within the framework of investment projects for creation of modern hotels, recreation areas, recreational complexes and other objects of tourist infrastructure, implemented by business entities in the tourist industry in Tashkent region.

The FRDU was instructed within a month to ensure opening of targeted credit lines to authorized commercial banks of Uzbekistan to allocate loans to business entities of the tourist industry.

The term of the loan will be issued up to 10 years, including a grace period of up to 3 years, at a six-month LIBOR rate plus 2 percent per annum and a refinancing bank margin of 0.5 percent per annum.

The loans will be issued to finances up to 50% of the project cost, but not more than US$10 million per investment project.

The loan is granted solely on the basis of decisions taken by authorized commercial banks to the investment projects, which were included to development program of the tourist industry of Tashkent region.

The resolution noted that authorized commercial banks will repay loans in hard currency. Business entities of the tourist industry pay off their obligations on loans in national currency.

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