President Shavkat Mirziyoyev has enacted a decree aimed at improving the financial and economic situation within the cotton growing industry. This initiative addresses several inefficiencies and challenges faced by cotton-textile clusters, as published in the Lex.uz database on July 23.
The decree identifies multiple errors in the establishment and management of cotton-textile clusters. During their creation and the assignment of land, applicants' experience in cotton growing and their material and financial potential were not adequately considered, leading to significant operational challenges. Additionally, there have been delays and irresponsibility in managing clusters that consistently fail to meet their contractual obligations and repay loans.
These clusters have accumulated high debt burdens and are struggling to pay for the raw cotton harvested in 2023. They have also been charged with implementing ineffective projects that do not align with their primary activities, further straining their financial resources.
The decree notes that the implementation of an automated system for accounting for raw cotton and fiber remains incomplete, hindering efficient management and oversight.
To address these challenges, the decree outlines several new measures effective from August 1.
Furthermore, clusters that fully repay their loans before December of this year will be reimbursed for the interest on these loans, minus the bank’s margin, as an incentive to encourage prompt loan repayment and reduce the financial burden on clusters.
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