Uzbekistan plans to draw two loans from the Japan International Cooperation Agency (JICA) totaling US$ 333.4 million, according to the draft resolution of the Cabinet of Ministers developed by the Ministry of Finance.
According to the draft, following the negotiations, JICA expressed its intention to provide loans:
- as operational assistance to combat the negative consequences of the coronavirus pandemic in Uzbekistan - 15 billion yen for a period of 15 years with a four-year grace period at a rate of 0.01% per annum.
- for the implementation of the project "Support for the development policy of the transition to a transparent and broad market economy in Uzbekistan" - 195 million dollars for 25 years with a grace period of 7 years at Libor rate (six months) plus 1.1% per annum. The Agency has developed a matrix of reforms in the energy sector, which is expected to be implemented by the Ministry of Energy and JSC Thermal Power Plants.
The Central Bank is proposed to be designated as Uzbekistan’s financial agent to "optimize the process of money transfers."
Discussion of the draft will last through March 20.