On April 16, Deputy Finance Minister Odilbek Isoqov and the Japanese Ambassador Yoshinori Fujiyama signed US$ 195 million worth of exchange notes to implement a development policy support program, the Embassy said.
The loan, aimed at financially supporting the government of Uzbekistan, aims to stimulate the country to address political issues in the electricity sector and contribute to the socio-economic recovery, stability and sustainable development. The loan is the first loan to Uzbekistan provided by Japan in US dollars.
“In Uzbekistan, along with economic growth, the demand for electricity is increasing, therefore management in the field of electricity, accurate statistics, financial management based on international accounting standards and strengthening the operation and maintenance of power plants are important,” the embassy.
The loan is provided for 25 years with a grace period of 7 years at the rate of Libor (six months) plus 1.1% per annum.
Uzbekistan's plans to attract two loans from the Japan International Cooperation Agency (JICA) totaling $ 333.4 million were announced in March.