10 percent poultry loan: new procedure to be introduced

A new mechanism for financial support of the poultry sector is being launched in Uzbekistan. It has been decided to allocate loans to poultry farms, compound feed producers, and "turnkey business" projects at an annual interest rate of 10 percent for a term of up to 10 years.

The new financing procedure will be introduced in stages. The decree provides for specific areas that will come into effect on August 1 and September 1.

Presidential decree adopted

The President's decree "On additional measures to support the poultry sector" has been adopted.

The document is aimed at expanding the production of poultry products, launching new capacities, and providing entrepreneurs in the sector with affordable financial resources.

The loans will be provided from funds directed from the Fund for Reconstruction and Development to JSCB "Mikrokreditbank".

What are the main terms of the loan?

The following terms have been set for loans issued under the new procedure:

The four-year grace period creates additional opportunities for setting up new production and bringing the project to a stage that generates stable income.

Which projects will be financed from August 1?

Starting August 1, 2026, 10 percent loans will be allocated to projects for launching new capacities for the production of poultry products.

Also, "turnkey business" projects being implemented based on the President's decree No. PQ–238 dated June 27, 2024, can take advantage of this financing opportunity.

Funds will be provided through "Mikrokreditbank".

Opportunities to be expanded from September 1

Starting September 1, 2026, 10 percent annual loans will also be allocated to the following areas:

• poultry farms;

• producers of compound feed for poultry;

• "turnkey business" projects.

Importantly, these terms will only apply to new loan agreements signed after September 1.

Therefore, the interest rates on previously obtained loans will not be automatically reduced to 10 percent based on this decree.

How might the new procedure affect the sector?

Preferential financing will allow poultry farms to increase production volume, purchase modern equipment, and launch new capacities.

Supporting compound feed producers is expected to serve to improve feed supply, which is one of the main costs in the sector.

At the same time, specific requirements for using the loan, documents to be submitted, and criteria for selecting projects will be reviewed by the bank based on the established procedure.

New financial opportunity for entrepreneurs

An annual rate of 10 percent, a term of up to 10 years, and a 4-year grace period can be a significant opportunity for entrepreneurs planning to start a new project in the poultry sector.

However, before applying, it is necessary to pay attention to which category the project falls into and the date after which the loan agreement will be signed.

Do you think 10 percent loans will have a positive impact on the prices of poultry meat and eggs? Leave your opinion in the comments.