DUSHANBE, January 16, 2009, Asia-Plus  - Cotton farmers have repaid some 15 million somoni (equivalent to more than 4 million US dollars) of loans to Tajikistan’s savings bank to this date, Ms. Gulnora Hasanova, deputy head of Amonatbonk, said in an interview with Asia-Plus.

In all, Amonatbonk has received 40 million somoni from the government for provision of loans to cotton-growing farms in 2008.

“These funds were provided to farming units in Khatlon and Sughd provinces in three tranches, and farms a repaying in time,” said Hasanova, “As it was planned, we have returned 12.5 million somoni of the principal and 1.177 million somoni of the loan interest the government by December 1, 2008.”

According to her, they provided loans to cotton farmers at an annual interest rate of 12 percent.  She noted that the loans should be fully repaid by April 1, 2009.

Asked about the agriculture ministry’s proposal to the government on temporarily suspending debt interest payments, Ms. Hasanova said, “We realize that in connection with the ongoing financial crisis, the cotton-growing farms are experiencing difficulties with realization of their product as the world cotton prices fell.”

“However, such an approach is not quite fair to say the least,” said the Amonatbonk official, “If the government approves this proposal, our bank will have to cover expenses connected with, for example, debt service on our own account.”    

As it had been reported earlier, the government at the beginning of last year allocated totaling 140 million somoni to five banks at the annual interest rate of 12 percent for provision of loans to cotton-growing farms.