ADB to allocate $500 million to Uzbekistan to mitigate negative impact of coronavirus pandemic

The Asian Development Bank (ADB) will allocate $500 million concessional loans to Uzbekistan to mitigate the negative impact of the coronavirus pandemic on the country’s economy, the Ministry of Finance of Uzbekistan reported.

The decision was unanimously approved by the ADB Board of Directors on June 25, 2020. 

The loan is granted for 15 years (including a 3-year grace period) with an annual interest rate - 6 months LIBOR rate + spread (0.5%).

These funds will be used to replenish the Anti-crisis Fund under the Finance Ministry of Uzbekistan and the State Budget to finance measures to mitigate the negative impact of the coronavirus pandemic. 

Prior to approving, ADB undertook an analysis of the macroeconomic situation in the country, including public debt-servicing risks. According to ADB estimates, the country’s public debt is stable at a low-risk level.