Regulatory Alerts2004-04-26 | 563Added · Updated
On Approval of the Regulation on the Procedure for Commercial Banks to Grant Loans to Farmer Holdings Pledged with Future Harvest
The Board of the Central Bank of Uzbekistan approved a regulation establishing the procedure for commercial banks to grant loans to farmer holdings producing agricultural products for state needs, secured by a pledge of future harvest. The regulation specifies that loans may be granted for up to 1.5 years and defines maximum loan amounts as percentages of contractation contracts: up to 30% (or 20% for cotton) for farmers receiving preferential credit line funds, and up to 80% (or 70% for cotton) for those who do not. It mandates that repayment be prioritized from proceeds of crop sales and insurance payouts, with banks required to monitor crop conditions and recover debts early if harvest risks arise.
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