AfDB Approves $ 100 Million Political Loan to Help Develop Financial Markets in Uzbekistan
AKIPRESS.COM – The Asian Development Bank (ADB) approved a political loan of $ 100 million to support the political, regulatory and institutional reforms needed to create an environment conducive to competitive financial markets in Uzbekistan.
“As Uzbekistan accelerates its transition to a market economy, strong and competitive domestic financial markets are essential to mobilize private investment,” said AfDB Managing Director for Central and West Asia Yevgeniy Zhukov . “The AfDB will help develop financial markets in Uzbekistan and stimulate private investment, a key driver of economic growth and an important source of new jobs in the country.
The AfDB Financial Market Development Program will support reform measures aimed at deepening and expanding Uzbekistan’s financial markets. It seeks to promote a more liquid government bond market and to diversify the investor base. The program will also help develop critical market infrastructure, including supervisory systems, and improve the supply of alternative financial instruments such as exchange-traded funds.
“The program will help reduce systemic vulnerabilities in Uzbekistan’s financial system through diversification away from a predominantly banking financial intermediation system. It will promote the development of the corporate securities market, strengthen demand from institutional investors such as insurance companies, diversify available financial instruments and broaden the investor base ”, said Syed Ali-Mumtaz H. Shah, AfDB Senior Financial Sector Specialist. “By strengthening the governance of financial markets, the program will improve market efficiency and investor protection. “
“The program will play an important role in providing investors with access to alternative investment opportunities and helping to raise funds profitably,” added AfDB Senior Public Management Economist Çiğdem Akın. “This will help Uzbekistan to diversify its financial system and advance towards its socio-economic development goals.
The AfDB will provide a technical assistance grant of $ 500,000 to support the main reform actions under the program.