Uzbekistan will attract $ 400 million from the World Bank to cover the state budget deficit

The loan was approved last December. Full repayment of the loan is scheduled for 2051.

The Cabinet of Ministers has decided to attract a loan of $ 400 million to support economic reforms. The document is published in the Lex.uz database.

With these funds, the Uzbek government expects to support development policies during the transition to an inclusive and competitive market economy. The money will be used to finance state budget expenditures.

The loan is provided by two members of the World Bank Group. The International Bank for Reconstruction and Development will provide $ 150 million at a variable rate of 18 years with a 5-year grace period. The last payment will be made in August 2039.

Uzbekistan will receive another $ 250 million from the International Development Association, with an annual adjustment rate of 1.25%. The loan is scheduled to be repaid in 30 years – in August 2051.

The World Bank has approved $ 400 million in funding for the country in December 2021. It is reported that these funds will allow to implement the following reforms:

• further liberalization of the wheat market;
• improving the management of state-owned enterprises;
• strengthening accountability and control over public spending and debt;
• combating gender discrimination in the labor market;
• expanding the coverage of benefits for the poor;
• expanding social protection and economic opportunities for women and people with disabilities.

In May, the World Bank’s Board of Executive Directors approved a new cooperation program with Uzbekistan until 2026. The organization focuses on human capital development, increasing inclusive employment, combating gender inequality, and green growth.

The World Bank has revised its growth forecast for the Uzbek economy for 2022-2023.

                                                                                                                                                                                                                                                                                                                               Source:spot.uz