Tashkent, Uzbekistan (UzDaily.com) -- The Asian Development Bank (ADB) has approved a US$300 million policy-based loan to further strengthen economic management in Uzbekistan, which should lead to greater macroeconomic stability and sustained economic growth.

This is the second subprogram of ADB’s Economic Management Improvement Program in Uzbekistan, approved in June 2018. The program is improving the government’s economic decision making by modernizing the macroeconomic data management systems. It is helping the government introduce reforms in fiscal and public financial management such as a medium-term budget framework, internal audit, public sector accounting, and procurement to improve the efficiency and transparency of the public sector. The program is also strengthening risk-based banking supervision by the central bank, improving the governance and viability of state-owned enterprises (SOEs), and promoting an enabling environment for public–private partnership projects, critical for leveraging private investments.

“ADB is pleased to support the important economic reforms that are currently underway in Uzbekistan,” said ADB Senior Public Management Economist for Central and West Asia Ms. Çiğdem Akın. “This loan will support Uzbekistan’s medium-term goals of improving macroeconomic management, boosting the operational and financial performance of SOEs, particularly in the power sector, and transforming the role of the state in the economy.”

ADB Senior Private Sector Development Officer for Central and West Asia Mr Bobir Gafurov added: “The loan will strengthen the banking sector’s market-based financial intermediation and the enabling environment for private sector development.”

Apart from ADB’s assistance, France’s Agence Française de Développement will also provide US$55.51 million in cofinancing for the second subprogram.

Since Uzbekistan joined ADB, the bank has committed 75 loans totaling US$8.1 billion, including two private sector loans totaling US$225 million. ADB also provided US$6 million in equity investment, US$218 million in guarantees, and US$97.7 million in technical assistance grants. To date in 2019, ADB committed five loans totaling US$637.3 million to develop horticulture value chain infrastructure and livestock value chains; improve the efficiency of railway transport; increase access to drinking water supply; and enhance the delivery of urban infrastructure projects.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to US$21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.