Interfax
October 21

The Asian Development Bank (ADB) has approved loans of $150 million a year for Uzbekistan from 2003 to 2005, the ADB office in Tashkent reported in a press release.

Priority sectors for the financing will be the banking system, corporate governance, education, agriculture, utilities and privatization, the press release states.

The ADB also plans to provide aid to the drought-affected areas, the health sector and mitigation of the social costs of reforms.

ADB's operations will consist of project loans, technical assistance and, if appropriate, quick disbursing operations. Uzbekistan's gross domestic product increased in the first half of 2002 by 4.5%, however, the economic situation has remained difficult due to falling cotton prices, overvalued exchange rates, and rising debt service payments. The ADB provides assistance to the Uzbek government in education, agriculture, auto and rail transport and social infrastructure.

Since 1996 the bank has allocated loans to Uzbekistan of $497 million on eleven projects and technical assistance grants totaling $21 million.

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