Japan sets to allocate over $246 mn to Uzbekistan to bolster economic and social development programs. The agreement was signed by Ilkhom Norkulov, the First Deputy Minister of Economy and Finance of Uzbekistan, and Bito Yoshchibumi, the head of the Japan International Cooperation Agency (JICA) office in Uzbekistan.
The funds will be channelled to support reforms to foster the market economy in Uzbekistan. A portion of the loan will also be dedicated to assisting vulnerable individuals.
The loan, denominated in Japanese yen, is granted to Tashkent for 30 years, inclusive of a grace period of 10 years. The annual interest rate is set at 1.8%.
JICA’s current focus in Uzbekistan is to bolster economic infrastructure, the private sector, and rural development. From 1993 to 2021, initiatives amounting to $1.5 bn were executed in Uzbekistan with the backing of JICA loans.
Earlier, Daryo reported that JICA plans to extend its assistance to Tashkent in the energy and medical sectors. In a meeting in Tokyo, Japan, the Uzbek delegation, led by Bahrom Norkobilov, Chairman of the State Committee for Veterinary Medicine and Livestock Development, deliberated on the financing of programs under the project “Development of Livestock Industry in Uzbekistan”. JICA has pledged a substantial allocation of $200 mn for this initiative.
The funds procured from JICA will be utilized to offer soft loans to business entities across various sectors, including cattle breeding, leather industry, fishery, and poultry farming. Of the total funds, $40 mn will be allocated as soft loans to entrepreneurs engaged in the field of leather processing and production of finished products.
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