Tashkent, Uzbekistan (UzDaily.com) — The Japan International Cooperation Agency (JICA) has finalized a loan agreement with Uzbekistan valued at 39 billion Japanese yen, approximately US$264.16 million. 

The document was signed during the visit of JICA’s senior vice president, Ms. Sachiko Imoto to Uzbekistan and within the meeting with Deputy Prime Minister and Minister of Economy and Finance of Uzbekistan Jamshid Kuchkarov.

Under this agreement, JICA will provide a Japanese ODA loan for the Inclusive and Resilient Socio-Economic Development Programme Loan. This programme is also supported by the World Bank, which is contributing $800 million in co-financing.

The primary objective of the Programme is to assist the Government of Uzbekistan in advancing its transition to a market economy and to enhance social inclusiveness and environmental sustainability through budget support. This initiative is aimed at contributing to sustainable economic growth and the development of an inclusive and resilient society in Uzbekistan.

The Programme will support various initiatives, including the creation of markets, improvement of fiscal risk management and public procurement processes, promotion of social inclusion and green resilience, and investment in people and connectivity.

The loan comes with an annual interest rate of 2.20%, a repayment period of 30 years, and a grace period of 10 years.