Uzbekistan plans to attract AIIB credit line for US$200 million.
Tashkent, Uzbekistan (UzDaily.com) - Uzbekistan plans to attract a credit line of the Asian Infrastructure Investment Bank (AIIB) in the amount of US$200 million to support business entities during the coronavirus pandemic.
This is stated in the government resolution “On measures to attract and use a credit line from the Asian Infrastructure Investment Bank to support business entities during the coronavirus pandemic.”
The document notes that the Ministry of Investments and Foreign Trade, the Ministry of Finance and the National Bank for Foreign Economic Activity of Uzbekistan (NBU) have reached a preliminary agreement with the AIIB on the allocation of funds.
The line of credit is expected to be provided in several tranches. Each tranche will be provided for a period of 5 years at a rate of 6 months. LIBOR + 0.65%, as well as the AIIB commission. The grace period for the credit line is two years.
The loan funds will be used to support and rehabilitate enterprises affected by the coronavirus pandemic, provide them with working capital and increase production capacity, including financing projects in the field of manufacturing, agriculture, wholesale and retail trade, public catering and transport.
NBU is the executive body responsible for the targeted and efficient use of borrowed funds and loans within the AIIB credit line.