Tashkent, Uzbekistan (UzDaily.com) -- The President signed Resolution “On measures to organize the activities of the Industrial Development Fund,” Norma reports.

The Industrial Development Fund under the Fund for Reconstruction and Development (hereinafter referred to as the Fund) will allocate funds for industrial projects with a project cost of more than $4 million:

to banks:

credit funds for the purchase of imported equipment, including compensation of advance payments, for industrial projects aimed at producing new types of products and expanding capacity, for a period of up to 10 years (grace period - up to 3 years), at a rate of 5% per annum in foreign currency and 10% per annum in national currency;

for the acquisition of buildings and structures for the purpose of organizing production under the industrial mortgage system, for a period of up to 7 years (grace period - up to 2 years), at a rate of 10% per annum in national currency;

credit funds or subordinate loans for the purpose of forming working capital for the purchase of raw materials for industrial enterprises for a period of up to 1 year at a rate of 4% per annum in foreign currency and 10% per annum in national currency;

The share of the project initiator must be at least 30% of the project cost, including the participation of funds in the amount of at least 15% (before the allocation of loan funds) of the cost of capital investments (except for loans allocated for the purpose of forming working capital);

compensation payments within the framework of funds allocated from the State Budget, starting from 2024 on the basis of a tripartite agreement in the amount of up to 50% (but not more than $20 thousand), related to marketing research of projects aimed at mastering the production of in-demand products, development of project documentation, attraction foreign specialists, certification of manufactured products;

a share of up to 25% in the authorized capital of a joint venture (SPV) established with industrial enterprises, can participate as a participant (founder) through a subsidiary of the Fund for Reconstruction and Development;

The fund purchases bonds issued by industrial enterprises, the issue of which was made within a period of no more than 5 years in accordance with the established procedure (in the equivalent of up to $10 million within the framework of one project) on the following conditions:

return on equity (ROE) of at least 15%;

the size of the annual yield on bonds in the national currency, taking into account the borrower’s risks, must not be lower than the rate of sovereign bonds in the national currency of Uzbekistan.

Proposals for the implementation of projects are submitted by the Ministry of Investment, Industry and Trade for consideration by the Government Commission on the basis of positive opinions of commercial banks, and for inclusion in the authorized capital of industrial enterprises - on the basis of positive opinions of the Fund.

From 1 January 2024, consideration of applications for receiving Fund resources will be carried out through the National Industrial Portal of Uzbekistan.