The Fund for State Support of Agriculture under the Finance Ministry of Uzbekistan has signed a financial agreement for $50 million with the International Islamic Trade and Finance Corporation.
The document was inked to further deepen structural reforms in agriculture, stimulate foreign direct investment as well as introduce effective methods of growing and processing raw cotton.
The agreement was concluded in the form of “murabaha”, according to which the recipient buys from the bank everything necessary at a higher price compared to its original cost. So a financial institution makes a profit, but the transaction itself under such an agreement is considered interest-free.
