Thursday, 15 April 2021 04:23 GMT

Uzbekistan, Saudi Arabia sign loan agreement

(MENAFN - AzerNews) By Kamila Aliyeva

Uzbekistan and the Saudi Development Fund signed a $50 million loan agreement.

The document was signed during the visit of the Uzbek delegation headed by First Deputy Finance Minister Ahadbek Khaydarov to Saudi Arabia.

'These funds will be used to implement a project to build modern housing in rural areas in Navoi, Fergana and Tashkent regions. In particular, it is planned to construct more than 2,000 houses under standard projects, the Uzbek State Committee for Investment noted.

In addition, the project will improve the existing infrastructure by building gas, electricity and water networks, roads, as well as social centers and sports grounds, schools, medical facilities, shops and bus stops.

Earlier, the authorities of the republic announced plans to attract more than $1.2 billion from international creditors for various projects for the construction of standard housing.

For example, it was planned that the Asian Development Bank would provide $700 million, the Islamic Development Bank - $300 million, the Kuwaiti Arab Economic Development Fund (KFAER) - $30 million, the Saudi Development Fund (SFD) - $50 million, and the Turkish State Bank Ziraat - $200 million, Sputnik reported.

The preferential mortgage for buying apartments in affordable high-rise buildings, as well as standard houses, is given to young families, residents of dilapidated apartment buildings and a number of other categories of citizens in need of better housing conditions.

The funds are provided with a three-year grace period and interest rate of 7 percent per annum for the first 5 years and a refinancing rate for the Central Bank for the subsequent period.

For the construction and reconstruction of affordable apartment buildings in cities, loans are issued for a period of 20 years, for the construction of residential buildings for renewed standard projects in rural areas - for 15 years.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.