Industrial Development Fund

By Decree of the President of the Republic of Uzbekistan No. PF-111 dated July 21, 2023, the Industrial Development Fund was established under the Fund for Reconstruction and Development of the Republic of Uzbekistan in order to radically develop industrial sectors.

The Resolution of the President of the Republic of Uzbekistan No. PQ-397 dated December 18, 2023 established the main tasks of the Fund, its sources of financing, and the main directions for the use of funds.

According to the Regulation, approved by Resolution No. 18 of the Cabinet of Ministers of the Republic of Uzbekistan dated January 10, 2024, the feasibility study of the project will be conducted by the scientific and technical council of the relevant sector, and the import contracts within the project will be examined by the State Enterprise "Center for Comprehensive Examination of Projects and Import Contracts".

The main areas of use of the Fund's funds are:

Metallurgy, mechanical engineering, automotive engineering, electrical engineering, chemistry, pharmaceuticals, textiles (except spinning and cotton processing), silk production, leather and footwear (except leather processing), jewelry, food biotechnology and medical nutrition, modern building materials production sectors and other industrial sectors.

Fund financing conditions:

1. Loans: For the purchase of imported equipment for industrial projects aimed at producing new types of products and expanding existing capacities, including to cover advance payments, loans are allocated at an annual interest rate of 5% in foreign currency and 10% in national currency for a period of up to 10 years, with a grace period of up to 3 years.
2. Industrial mortgage: Loans for the purchase of buildings and structures for the purpose of organizing production for a period of up to 7 years, with a grace period of up to 2 years, based on the industrial mortgage system at an annual rate of 10% in national currency.
3. Working capital: In order to form working capital for the purchase of raw materials, industrial enterprises are allocated loans or subordinated debt funds at an annual rate of 4% in foreign currency and 10% in national currency for a period of up to 1 year.