Uzbekistan is reforming its textile and clothing industry.

Credit lines for a period of ten years, with a three-year grace period, at a rate of four per cent per annum, will be opened in commercial banks for projects for the production of fabrics, carpets, finished garments and knitwear, dyeing and finishing. The following conditions must be met for preferential loans:export of 50 per cent of the total volume of products (in case of non-compliance with export obligations, the interest rate during the grace period increases to five per cent);participation of own funds, including buildings and structures, working capital in the amount of at least 30 percent; and absence of overdue debts on credit obligations. The banks’ margin for preferential loans is set at one per cent.

In addition, commercial banks will provide loans for a period of 24 months, including a six-month grace period and with a bank margin not exceeding two per cent. The requirement of a monthly advance payment for electricity consumption to textile and clothing and knitwear enterprises has been abolished.

Textile and clothing enterprises will be able to transfer funds abroad up to a certain amount without separate solutions for creating trading houses and shops.