Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan attracted a loan and a grant from the German Development Bank (KfW) in the amount of 29.8 million euros for financial support of small and medium-sized businesses.

President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to implement the project “Financial support for small and medium-sized businesses” with the participation of the German Development Bank”.

The resolution notes that in accordance with the agreement on financial cooperation between the Republic of Uzbekistan and the Federal Republic of Germany, a loan and grant agreements on the allocation of a loan at a rate of 2 percent per annum for a period of 30 years, including a grace period of 10 years, was signed to finance the project “Financial support for small and medium-sized businesses” in the Republic of Uzbekistan on the part of KfW.

The total cost of the project is estimated at 29.8 million euros, of which the KfW loan is 26.8 million euros and the grant is 3.0 million euros for consulting services related to the implementation of the Project.

The project implementation period is 4 years (2021-2024). The project is being implemented in the Republic of Karakalpakstan and in all regions.

The Ministry of Agriculture is the executive body responsible for the timely and complete implementation, coordination and management of the project, as well as monitoring and reporting in the process of project implementation.

The subsidiary loan funds are provided to financial institutions participating in the project in the currency of the Republic of Uzbekistan and euros. Financial losses resulting from changes in the exchange rate of foreign currency in relation to the national currency are reimbursed at the expense of the republican budget of the Republic of Uzbekistan.

The Ministry of Finance was instructed to provide borrowed funds from KfW to financial institutions participating in the project:

for on-lending in the currency of the Republic of Uzbekistan - at a rate not lower than the main rate of the Central Bank;

in case of on-lending in euros, in an amount not exceeding 25 percent of the rate of the attracted loan, with the margin of the Republic of Uzbekistan.