Investment loan – a loan provided for construction, reconstruction or technical re-equipment (including the development of design estimates and project appraisal, procurement of equipment, construction and other works), as well as the purchase or creation of other fixed assets and related purchases part of the working capital necessary to ensure the normal operation of industrial facilities and the service sector.
Investment loans are granted to business entities with the rights of a legal entity, regardless of the form of ownership, in national and foreign currencies, having deposit accounts on demand with the Bank. The issuance of investment loans in foreign currency is carried out in accordance with the requirements of the “Regulation on the procedure for lending to investment projects in freely convertible currency”, registered by the Ministry of Justice on March 22, 1999 No. 681.
When deciding on the provision of investment loans in foreign currency to borrowers by the Bank, special attention is paid to the availability of sources for their repayment based on the basic principle – currency self-repayment of lending activities.
Investment loans are issued to borrowers on the basis of repayment, payment, security, urgency and intended use. Borrowers are responsible for the efficient use of credit resources of the bank. In cases of violation of credit conditions, measures of economic impact are applied to them.
Investment loans are provided at the expense of own and attracted credit resources in compliance with the economic standards established by the Central Bank of the Republic of Uzbekistan for operations in national and foreign currency.
An investment loan is granted on commercial terms, which are determined in the loan agreement concluded between the bank and the borrower, with interest in the national currency (when issuing a loan in national currency) and in foreign currency (when issuing a loan in freely convertible currency). Any changes to the loan conditions are made out by an additional agreement to the loan agreement.
The term for granting an investment loan is established in the loan agreement according to the feasibility study submitted by the borrower, depending on the payback period of the project, necessary for it to complete the project and start production of the products stipulated by the project, but not more than 3.5 years (42 months).
When deciding on the provision of an investment loan, special attention is paid to the availability of sources and guarantees of its repayment, the timeliness of the borrower to fulfill its obligations to the bank on previously issued loans.