President Gurbanguly Berdimuhamedov signed a resolution authorizing the designated banks of Turkmenistan to issue soft credits to the farmer associations, agricultural joint-stock companies, landowners, tenants and agricultural research institutes.
As the Turkmenistan.ru correspondent reports quoting the press service of the President of Turkmenistan, the purpose of this decision is to provide financial support for farmers, promote innovations, modern technologies and best practices in agriculture, improve soil fertility and further improve social and living conditions of the rural population and to create new jobs.
Soft credits will be issued for the purchase of agricultural machinery, tools and equipment, as well as water-saving technologies, equipment, irrigation water pipes for the period of 10 years on the condition that credits will be returned annually in equal parts, based on the operational life of the purchased goods, with an annual interest rate of 1percent.
Farmers will be also able get credits to finance investment projects related to raising livestock and poultry, production and processing of agricultural products and provision of services and purchasing fixed assets and property for the period of 10 years with an annual interest rate of 5 percent.
The resolution instructs the Central Bank of Turkmenistan to develop within a month a procedure of issuing soft credits and approve it in the established manner.
© TURKMENISTAN.RU, 2016