UniCredit Bank Austria allocated €7.9 million of concessional financing (soft loan) to the agricultural sector of Uzbekistan, Spot reports.

The loan agreement was signed by Uzbek Ambassador Abat Fayzullayev at a meeting with bank representatives Marion Kristen and Reinhard Posh. The borrowed funds will be used to transfer innovative technologies to the industry.

The largest bank in Austria is opening a preferential credit line, which will finance the modernization of the Uzbek agricultural industry with the help of Austrian developments.

For example, with the bank’s money, agricultural enterprises will be equipped with sprinkler irrigation systems from Bauer GmbH. The corresponding contract with the company was previously signed by the Ministry of Agriculture.

Installations provide water savings up to 40%, fuel – up to 30%. The consumption of mineral fertilizers will be reduced by 35%, and labor costs by 90%, the ministry says.

The parties also discussed expanding cooperation in the banking and financial sector and attracting Austrian concessional financing to the economy of Uzbekistan, including for exporters and investment projects.

Separately, soft loans projects from the Austrian Control Bank were noted. It provides funds at a minimum or zero rate for social projects implemented in Uzbekistan.

UniCredit will consider export credits involving Austrian companies, where the share of Austrian goods and services exceeds 50%, Kristen promised. According to international standards, the bank will finance up to 85% of the project cost.

UniCredit Bank Austria, part of the UniCredit group, is considered the largest bank in Austria with over 300 branches. The main areas of activity are investments, asset management, export financing.