100 million $ loan to Uzbekistan by ADB
Yesterday, the Asian Development Bank's (ADB) press service confirmed that it will grant loans to Uzbekistan to assist small and medium-sized enterprises prosper.
The $ 100 million loan will implement reforms that will make small and medium-sized businesses more comfortable, creating more favorable conditions for this.
Later, this money is anticipated to implement the first phase of the small and medium enterprise development program.
In particular, this loan will create new jobs in the long run, which, in turn, will account for more than half of the country's GDP and two-thirds of the country's jobs. However, the impact of the pandemic on small and medium-sized businesses was not positive. The bulk of businesses have been affected by pandemic-related restrictions, especially in the tourism sector.
There are two procedures in the ADB routine. The first procedure is to improve the efficiency of small and medium-sized organizations' operational and commercial environments. This entails diversifying variety of financial processes in order to improve the number of transactions available to enterprises with restricted credit prospects. At the same time, it is planned to reduce the number of licenses and permits required for the activity. The implementation of this program should result in the creation of new jobs, the number of which is projected at least 13500.
In addition, ADB’s quarter of a million dollars will help government agencies introduce reforms to digitize and implement digital solutions for small and medium-sized businesses.