KULOB, March 13, 2009, Asia-Plus  -- A regional conference entitled “Experience of Lending Cotton Sector in 2008” was held in Kulob on March 12.

The conference participants included senior representatives of branches of banks in Khatlon’s Kulob region.

Speaking at the conference, representatives of the banks participating in the cotton lending practices offered to review the cotton sector lending mechanism introduced in 2008.

They, in particular, noted that the first experience of introduction of the new cotton lending mechanism had proved to be varied.  Moreover, the global financial crises resulted in international cotton prices and demand for cotton falling that has hurt many cotton farmers in Tajikistan.

During the conference it was noted that as of March 12, only some 38 percent of the cotton loans has been repaid.

Representatives of local banks noted that loan payments should be extended from 12 to 18 months; otherwise, cotton farmers would have no enough time for realization of the product.  The farmers’ loans are currently due by April 1.

They also noted that loans should be provided only to farming units planting cotton on at least 10 hectares (last year, cotton loans were provided to farms planting cotton on 5 hectares and more).  Besides, loans should be provided only to farming units that repaid at least 50 percent of cotton loan last year, the conference participants said.