The loan agreement for US$ 30.6 Million is destined for the financing of the Infrastructure for Rural Housing Project (Part Two) in Uzbekistan. The Project consists of construction of 13,312 affordable houses, improved rural housing in 6 regions of Uzbekistan; namely: The Republic of Karakalpakstan, Kashkadarya, Samarkand, Surkhandarya, Tashkent region and Fergana. The Loan was issued for a period of 24 years, including a grace period of 4 years & shall be repaid in 40 semi-annual installments. The loan bears an interest rate of 2% per annum, including administrative costs.
The current loan represents the 10th Loan extended by the Kuwait Fund to the Republic of Uzbekistan which totaled approximately US$ 101 million before current loan was announced.