Uzbekistan secures major international anti-crisis loans

Suma Chakrabarti during the videoconference. Photo from

The Ministry of Investments and Foreign Trade of Uzbekistan has reached agreements with three major international banks for financial assistance towards the country’s anti-crisis programme, the ministry’s press service has reported (in Russian).

The World Bank, the European Bank for Reconstruction and Development (EBRD) and the Asian Infrastructure Investment Bank (AIIB) have all agreed to provide the country with funds. The arrangements were made during videoconference talks with Uzbek investments minister Sardor Umurzakov between 6 and 7 April.

Vice President of the World Bank for Europe and Central Asia Cyril Muller told Umurzakov that the Bank was working on the prompt allocation of around $1.2 billion to help finance Uzbekistan’s healthcare system and welfare institutions, and for general budgetary support. This sum will be an addition to the $700 million loan approved by the World Bank in March to help modernise public infrastructure and the agricultural industry in the country.

EBRD president Suma Chakrabarti said that his organisation would provide four of Uzbekistan’s commercial banks with lines of credit totalling $220 million, as a first step aimed at supporting small and medium-sized businesses and trade financing. The EBRD is also working on allocating up to $100m to support the working capital of local regional utilities companies whose revenue has dropped due to declining payments from businesses and the public.

AIIB head Jin Liqun agreed to draw up plans for an emergency loan to help finance Uzbekistan’s healthcare system and the country’s businesses. No details were given about the loan’s size.