Asian Development Bank lends 500 million dollars to Uzbekistan for the protection of the needy

The Asian Development Bank has approved a loan of 500 million US dollars to ensure food security in Uzbekistan, protect vulnerable sections of the population, and support employment due to Russia's invasion of Ukraine.  This was announced on the bank's website.

According to it, the ADB will assist the government of Uzbekistan in the implementation of the program "Stabilization of costs against development" worth 1.2 billion dollars.

It is noted that the government program is aimed at strengthening food security and ensuring price stability, providing direct social assistance to low-income families, the elderly, and other sections of the population in need of social protection, as well as aimed at supporting unemployed migrant workers.

"After Central Asia recovered from the pandemic, the region faced economic losses caused by the war, which made the lives of especially vulnerable (low-income - ed.) people difficult," says Yevgeny Zhukov, director general of the Central and Western Asia Department of the ADB.

It is noted that the economic shock caused by the coronavirus disease (COVID-19) pandemic and Russia's invasion of Ukraine caused serious damage to Uzbekistan.  These effects include higher trade costs, higher inflation and unemployment, and reduced remittances.

This, in turn, reduces the purchasing power of low-income households, weakens personal consumption, and leads to an increase in poverty.

ADB will also provide technical assistance to support monitoring and evaluation, funded by a US$400,000 grant from the Special Fund.

For information, Uzbekistan is a landlocked country and a member of the Central Asian Regional Economic Cooperation (CAEC) program, which promotes economic growth and sustainable development through cooperation between 11 member states.  The MOMIH program has helped improve the efficiency of roads and railways, simplify border crossings, promote trade and improve access to energy for millions of people in the region.