ADB approves $ 300 million loan for Uzbekistan
By Kamila Aliyeva
The Board of Directors of the Asian Development Bank (ADB) approved a loan of $ 300 million to help improve economic management in Uzbekistan.
The Economic Management Improvement Program aims to support the government's critical efforts to ensure fiscal sustainability, as well as to improve the administration of state-owned enterprises that dominate almost all key sectors of the Uzbek economy and to ensure their financial activities in a more efficient way.
Within the project, it is planned to improve access to bank financing by strengthening banking supervision and financial intermediation in order to organize competitive financing for financial sector operations, as well as strengthening the collection, analysis and management of economic data and its distribution systems in order to effectively make economic decisions.
In addition to this loan, ADB will also provide technical assistance in the amount of $ 1 million to strengthen the government's capacity to implement reforms, in particular budgetary mechanisms, public-private partnerships, internal audit, risk-based supervision and capital adequacy assessment, and among others gender sensitivity public expenditure programs.
"The ongoing reforms are aimed at improving economic management and creating a stable investment climate in Uzbekistan, which is necessary for increasing participation of the private sector in the economy," said Takeo Konishi, the head of the ADB's permanent representative office in Uzbekistan.
Earlier, the bank announced plans to provide Uzbekistan with $2.6 billion in sovereign loans in 2017-2019 to continue the development of infrastructure in the energy, transport, utilities sectors, to strengthen support for housing construction in rural areas, and to improve access to financial resources for small and medium-sized enterprises and agribusiness.
Uzbekistan joined the ADB in August 1995. Since joining ADB, Uzbekistan has received 65 loans totaling more than $6.3 billion. Since 2001, thanks to ADB projects, more than 4.5 million Uzbeks have gained access to water and sanitation services. Since 2011, the rural housing development program, funded by ADB, has provided affordable housing with modern infrastructure to over 41,000 families in Uzbekistan living in rural areas.
The ADB program in Uzbekistan has provided loans, grants and technical assistance to grow the country’s economy and improve the lives of people, particularly the poor, women, children and other vulnerable groups.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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