Textile Industry Support Fund being created in Uzbekistan 

According to the document, it was instructed to create a Textile Industry Support Fund under the Export Promotion Agency without establishing a legal entity and determine the sources of its income:

- funds allocated from the Reconstruction and Development Fund;
- fees charged for the export of cotton yarn and knitted fabric across the customs border of the Republic of Uzbekistan, in the amount established by legislative acts;
- charitable funds of individuals and legal entities, grants from international financial institutions and foreign organizations;
- other sources not prohibited by legislative acts.

For the period from February 1, 2022 to January 1, 2025, a procedure will be established in accordance with which:

a) enterprises that have implemented projects for the production of dyed linen, mixed and dyed fabric products in the Republic of Karakalpakstan and regions will be allocated subsidies in the amount of 10% of the cost of equipment purchased under these projects, but not exceeding the equivalent of $500 thousand, at the expense of the fund. In this case, it is necessary:

- to purchase new equipment within the framework of the above projects;
- not to include in the cost of equipment the cost of delivery and other additional services;
- to have an act on putting the project into operation;

b) enterprises that purchase equipment for the production of dyed fabric, mixed and dyed fabric products, as well as yarn, in which artificial fibers account for more than 80%, JSC National Bank for Foreign Economic Affairs of the Republic of Uzbekistan will be provided with loans in foreign currency to pay a 15% initial payment for up to 7 years, including a grace period of 3 years, at the deposit rate established in accordance with paragraph four of clause 4 of this decree, with the addition of a bank margin of 1%;

c) enterprises exporting dyed fabric, finished garments and knitwear, JSC National Bank for Foreign Economic Affairs of the Republic of Uzbekistan will be allocated loans in foreign currency in an amount not exceeding $3 million for pre-export financing, including replenishment of working capital funds for a period of up to 1 year, including a grace period of up to 9 months, at the deposit rate established in accordance with paragraph four of clause 4 of this decree, with the addition of a bank margin of 1%;

d) enterprises in whose total revenue from the sale of dyed fabric finished garments and knitwear, including through a commission agent (attorney), the share of exports of these products is at least 80%, are granted the right to: