️ The Cabinet of Ministers of Uzbekistan has approved a regulation through Decree No. 88 dated March 2, establishing a procedure for providing preferential education loans to youth and teaching staff for study at foreign universities that hold high positions in international rankings. This move is part of broader efforts to enhance international educational cooperation and develop skilled human resources within the country, though it raises questions about the financial sustainability and accessibility of such programs for average citizens.
️ According to the regulation, the loans are allocated for undergraduate, graduate, and doctoral programs, but only for institutions ranked within the top 300 in international ratings. The maximum loan amount can be up to 20,000 US dollars per academic year, with funds disbursed in national currency and the interest rate set at the level of the Central Bank's base rate. This structure aims to support advanced education abroad but may impose significant repayment burdens on borrowers in a challenging economic environment.
️ The loan process is managed through commercial banks, which allocate funds from the Education Credit Financing Fund. Applicants must submit a request along with required documents to a bank, which then reviews the documents, makes a decision, and signs a credit agreement. Family members of the borrower or other third parties can participate as co-borrowers, potentially increasing financial risks for households. The reliance on banking institutions introduces complexities that could hinder equitable access, particularly for those from less privileged backgrounds.
️ The principal debt is to be repaid over 7 years, starting from the 7th month after the student's official study period ends. If the borrower or co-borrower fails to make interest payments and repay the principal as scheduled, the bank will take measures to recover the overdue debt according to its internal rules. This repayment framework, while designed to ensure financial accountability, may lead to heightened debt pressures and social friction, especially if economic conditions worsen or employment opportunities for graduates prove insufficient.
Source: www.gazeta.uz