On Measures to Expand Financing Sources for Investment Projects in the Food, Leather and Footwear, and Pharmaceutical Industries

In order to accelerate the implementation of investment projects within the framework of approved programs for the development of the Republic's food, leather and footwear, and pharmaceutical industries, encourage and thoroughly prepare new investment project initiatives in these sectors, and ensure the effective organization of their practical implementation:

1. Approval is granted for proposals by the Ministry of Economy of the Republic of Uzbekistan, the Ministry of Finance, the Ministry of Foreign Economic Relations, Investments and Trade, and authorized commercial banks (National Bank of Foreign Economic Activities of the Republic of Uzbekistan, "Uzsanoatqurilishbank" JSC, and "Asaka-bank" JSC) to open credit lines of 300 billion UZS each for joint financing of investment projects carried out by organizations in the food, leather and footwear, and pharmaceutical industries, including for construction and installation works and other expenses in national currency.

2. It is established that within the framework of credit lines, loans in foreign currency are provided under the following conditions:

• Loans are granted only for the purchase of modern imported equipment, technologies, and materials within the framework of investment projects in the food, leather and footwear, and pharmaceutical industries;
• The loan term is up to 7 years, including an interest-free period of 2 years; the interest rate is equal to the 6-month LIBOR rate plus 1.0% per annum, and the refinancing bank's margin is 1.0% per annum;
• Investment projects in the food, leather and footwear, and pharmaceutical industries to be financed within the framework of credit lines must undergo mandatory expertise in the Industry Scientific and Technical Council, and import contracts concluded for the purchase of modern imported equipment and technologies in the course of their implementation must undergo mandatory expertise in the State Committee for Investments of the Republic of Uzbekistan.

4. A permanent Working Group for forming a package of new investment projects in the food, leather and footwear, and pharmaceutical industries is established in the composition specified in Appendix 1, with the following main tasks assigned to it:

• Primarily, searching for and forming new project proposals in the food, leather and footwear, and pharmaceutical industries aimed at producing export-oriented competitive products, as well as organizing the quality preparation of necessary project documentation;
• Identifying the most optimal technologies and modern high-efficiency equipment recommended for use within the framework of implementing investment projects provided for in the approved programs for the development of the Republic's food, leather and footwear, and pharmaceutical industries;
• Promptly resolving issues arising in the process of implementing investment projects in the food, leather and footwear, and pharmaceutical industries financed in foreign currency from credit lines, and monitoring their implementation.

5. The following procedure is established:

a) Authorized commercial banks settle their obligations on loans attracted in foreign currency by paying in foreign currency within the framework of credit lines;

b) Organizations in the food, leather and footwear, and pharmaceutical industries settle their foreign currency obligations from export proceeds in the prescribed manner;

c) Based on the relevant conclusions of the Ministry of Economy of the Republic of Uzbekistan and the Ministry of Finance of the Republic of Uzbekistan:

• Pharmaceutical industry organizations implementing investment projects for the production of products included in the list of socially significant medicines and medical devices sold at strictly regulated prices, approved by the Decision of the President of the Republic of Uzbekistan dated October 31, 2016, No. PQ-2647;
• Organizations producing packaging materials for the food industry and creating modern cooling capacities;
• Organizations engaged in the deep processing of cattle and small livestock hides for the production of modern leather and footwear, as well as suppliers of materials and components for manufacturers of finished leather and footwear products, settle their obligations on loans attracted in foreign currency in national currency by carrying out conversion in the prescribed manner in the domestic currency market.

6. The Central Bank of the Republic of Uzbekistan is recommended to ensure the timely conversion of funds for the repayment of loans in foreign currency within the framework of credit lines attracted for the implementation of investment projects specified in paragraph 5(c) of this Decision.

7. Authorized commercial banks are authorized to:

• Capitalize accrued interest on loans provided until the date the investment project is put into operation;
• Establish subsidiaries with a bank share of 100% (including using funds of investment companies), as well as establish enterprises with the participation of other investors for the implementation of investment projects and provide loans to them.

9. "Uzbekovqatoholding" HC, "Uzfarmasanoat" JSC, "Uzbekcharmboyabzali" association, interested ministries and departments, and commercial banks are to align their normative and legal documents with this Decision within one month.

10. Control over the implementation of this Decision is entrusted to the Prime Minister of the Republic of Uzbekistan, A.N. Aripov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV Tashkent January 6, 2017 Decision No. PQ-2718

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APPENDIX 1

To the Decision of the President of the Republic of Uzbekistan dated January 6, 2017, No. PQ-2718

Composition of the Permanent Working Group for Forming a Package of New Investment Projects in the Food, Leather and Footwear, and Pharmaceutical Industries

Position	Name	Role
Chairman of the Working Group / First Deputy Chairman of the State Committee for Investments of the Republic of Uzbekistan	S.H. Bekenov
First Deputy Minister of Economy	G.V. Ormonova
Deputy Director of the National Project Management Agency under the President of the Republic of Uzbekistan
Head of the Combined ATD for Macroeconomic Analysis and Forecasting, Reforming of Financial and Banking Systems, Private Entrepreneurship and Small Business Development of the Cabinet of Ministers	A.E. Ravshanov
Head of the ATD for Agriculture and Water Management, Processing of Agricultural and Food Products of the Cabinet of Ministers	K.S. Rizaev
Head of the ATD for Education, Healthcare, Physical Culture and Sports of the Cabinet of Ministers	A.K. Mirsatoev
Chairman of the Board of the National Bank of Foreign Economic Activities of the Republic of Uzbekistan	A. K. Mirsatoev
Acting Chairman of the Board of "Uzsanoatqurilishbank" JSC	A.B. Voitov
Chairman of the Board of "Asaka-bank" JSC	K.K. Mullažonov
Director of the Agency for the Development of the Pharmaceutical Industry under the Ministry of Healthcare	A.R. Abdullaev
Chairman of the "Uzcharmsanoat" association
Deputy Executive Director of the Restoration and Development Fund / Secretary of the Working Group

Note: If a member of the Working Group changes jobs, persons newly appointed to these positions or entrusted with performing the relevant functions are included in its composition. (Appendix 1 edited by the Decree of the President of the Republic of Uzbekistan dated April 30, 2021, No. PF-6217 — National Database of Legislative Acts of the Republic of Uzbekistan, 01.05.2021, No. 06/21/6217/0409)