Uzbekistan borrows $400 million from the World Bank

The World Bank provided $400 million in soft loans for the development of Uzbekistan.  This is stated in the decision of the Cabinet of Ministers of 17 June 2013, “On measures for the implementation of the project “Acceleration of the development policy of Uzbekistan in the transition period” with the participation of the World Bank”.

It is reported that The International Bank for Reconstruction and Development (IBRD) provided $150 million for 18 years with a five-year privileged period, and the International Development Association (IDA) - $250 million for 30 years with a five-year privileged period.

It was noted that the loan provided by IBRD and IDA will be directed to the financing of expenses of the state budget of the Republic of Uzbekistan.

In addition, expenses related to the repayment of the loan allocated by the IBRD and IDA, interest of loan, service and brokerage fees will be covered from the state budget of the Republic of Uzbekistan.

It should be recalled that the Board of Executive Directors of the World Bank had earlier approved the allocation of a soft loan of $142 million for Uzbekistan.  The funds will be used to finance a project to improve landscape sustainability and reforestation in various parts of the country, as well as to develop cooperation between Uzbekistan and other Central Asian countries to restore transboundary natural territories.