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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of July 22, 2024 No. UP-103

About measures for improvement of financial and economic condition of the companies in the field of cotton breeding

(as amended of the Presidential decree of the Republic of Uzbekistan of 17.01.2025 No. UP-7)

For the purpose of ensuring financial stability of cotton and textile clusters and continuity of deep conversion of cotton raw, and also strengthening of discipline of settlement in the field of:

1. Determine the following measures directed to financial improvement of cotton and textile clusters (further - clusters):

to the clusters which completely returned the soft credits allocated by commercial banks on expenses for cultivation of cotton raw of harvest of 2023 at the expense of credit resources of Fund of the state support of agricultural industry under the Ministry of Economics and finance (further - Fund), at the same time extended repayment period of remaining balance of soft credits till April 1, 2025, but completely returned them till December 1, 2024, interest payments on this credit (in addition to margin of bank) return at the expense of Fund till March 1, 2025;

terms of return of remaining balance of the soft credits allocated to clusters for cultivation of cotton raw of 2023 according to the credit resources of Fund allocated to commercial banks are prolonged till April 1, 2025 based on the positive conclusion of commercial banks.

2. To the chairman of the board of Ministers of the Republic of Karakalpakstan, to hokima of areas and the Minister of Agriculture to specify that:

during creation of clusters and fixing of lands of agricultural purpose behind them are not considered experience in the field of cotton breeding, the material and financial potential of applicants;

the delay, irresponsibility and rejection of adequate measures in work with clusters, constantly inobservant the agreement obligations, concluded within activities of cluster, regularly not returning credit debts to the commercial banks that led to their high credit loading without the financial potential which did not perfrom still complete calculations with farmers for cotton raw of 2023 are allowed;

damage is caused to financial condition of clusters by assignment on clusters of implementation of inefficient projects in the different directions, the actions which are not connected with their direct activities;

works on implementation of the automated system of obligatory accounting of the cotton raw accepted by means of electronic scales, the made cotton-fiber, and also its integration with the information system "Agroplatforma" are not complete.

3. Determine that since August 1, 2024 are drawn up in additional procedure the personal guarantee of founders of clusters on the credits allocated by commercial banks at the expense of credit resources of Fund.

4. Agree with the following conditions:

a) permission to provision as proof of the cotton-processing plants and Items on cotton acceptance (further - property complex) bought with payment term by installments and which part of cost is paid in the amount of 35 percent and more from redemption value, as property complex for the attracted loan. At the same time:

as ensuring implementation of the rest of payments on acquisition of property complexes the insurance policy of insurance company on non-payment of payments and (or) the guarantee of the third party or guarantee of other bank is provided;

by transfer of property complexes by credit debt in the order of commercial banks as mortgage property exposure of property complex to the biddings is performed with condition of preserving their types of activity;

b) prolongation for year of term of debts on the payment schedule determined in the purchase and sale agreements signed with clusters on acquisition of property complexes of the abolished JSC Uzpakhtasanoat.

5. Approve structure of the Working group on streamlining of the activities of the cotton and textile clusters which did not fulfill obligations consisting led by Audit Chamber of representatives of the Prosecutor General's Office, the Ministry of Agriculture, the Ministry of investments, the industry and trade, the Ministry of Internal Affairs, Council of Ministers of the Republic of Karakalpakstan and khokimiyats of areas, the Tax Committee, Fund, commercial banks (further - the Working group) according to appendix No. 1.

To the Cabinet of Ministers (A. Aripov) in week time to determine the main objectives of the Working group and to coordinate its activities.

To working group in two-month time to enter information on the carried-out works in Administration of the President of the Republic of Uzbekistan.

6. Take into consideration that in case of insolvency of clusters because of person acting as the participant subsidiary responsibility according to its obligations can be conferred on this person, in case of insufficiency of property of cluster.

7. Make changes and additions to some acts of the President of the Republic of Uzbekistan according to appendix No. 2.

8. To the chairman of the board of Ministers of the Republic of Karakalpakstan and hokima of areas, and also the Minister of Agriculture I. Yu. Abdurakhmonov beginning to take measures for ensuring effective functioning of capacities of clusters from conversion of cotton raw before production of finished goods, and also on elimination of the arising problems.

Control of execution of this Decree, implementation of coordination and control of activities of the ministries and departments responsible for its execution to assign to the Prime Minister of the Republic of Uzbekistan A. N. Aripov and the adviser to the President of the Republic of Uzbekistan Sh. M. Ganiyev.

President of the Republic of Uzbekistan

Sh. Mirziyoev

 

Appendix № 1

to the Presidential decree of the Republic of Uzbekistan of July 22, 2024 No. UP-103

Structure of the working group on regulation of activities of the cotton and textile clusters which did not fulfill the obligations

M. Abdullaev

-

first deputy chairman of Audit Chamber, head of the Working group

Zh. Hatamov

-

deputy attorney general, deputy manager of the Working group

I. Abdurakhmonov

-

Minister of Agriculture, deputy manager of the Working group

A. Haydarov

-

deputy minister of economy and finance

N. Holmuradov

-

first deputy minister of investments, industry and trade

S. Nishanbayev

-

deputy minister of internal affairs

On position

-

Chairman of the board of Ministers of the Republic of Karakalpakstan and hokima of areas

Zh. Abdiyev

-

vice-chairman of the Tax Committee

A. Isroilov

-

director Fonda of the state support of agricultural industry

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