World Bank allocates $800 mln for Uzbekistan's economic reforms

TASHKENT. Oct 7 (Interfax) - The World Bank has approved a concessional loan of $800 million to Uzbekistan for developing the country's private sector and social protection system and for tackling climate change.

"The World Bank's Board of Executive Directors approved a financial package of $800 million in highly concessional loans to support Uzbekistan's reform agenda geared towards advancing the country's transition to an inclusive and resilient market economy," the bank said in a press release.

The government's program of structural reforms supported by the World Bank includes further measures to improve the business environment, raise efficiency in agriculture and in the railway and energy sectors, improve public financial management, expand access to social protection services, and raise the country's preparedness for risks related to environmental and climate change.

"The financing, provided by the World Bank through highly concessional loans, offers the government low-cost, long-term repayment options that are more favorable than those available in international financial markets. As a result, Uzbekistan will benefit from lower loan repayment costs, freeing up more budget resources for its social and economic priorities," it said.

Uzbekistan is a one of the largest recipients of aid from the World Bank. Its portfolio of projects currently exceeds $12 billion.