The Cabinet of Ministers adopted Measures to implement the project "Financial Market Development Program" with the participation of the Asian Development Bank Resolution.
On October 7, 2021, the Board of Directors of the Asian Development Bank decided to provide a $ 100 million loan to Uzbekistan for a period of 25 years with a grace period of 5 years under the project "Financial Market Development Program".
ADB funds will be used to finance Uzbekistan’s budget. The Ministry of Finance is the executive body responsible for coordinating and monitoring the implementation of the project, as well as the targeted and efficient use of ADB funds. In order to partially hedge currency risks, it is planned to carry out the first test swap operation in cooperation with international financial counterparties for a period of 3 years through the $ 20 million part of ADB funds.
Expenses related to the repay the principal and interest of the ADB funds, as well as interest under the first test swap operation, will be covered from the budget of Uzbekistan. In this case, according to the general agreement of the International Association of Swaps and Derivatives, the revenues are reflected as revenues of the republican budget.
The Central Bank was recommended to act as a financial agent in the implementation of the project and transactions with the International Association of Swaps and Derivatives.
The Asian Development Bank (ADB) has approved a forecast schedule for debt repayment and interest payments under the Financial Market Development Program.
