Uzbekistan intends to attract loan from World Bank to mitigate consequences of monetary liberalization

Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan plans to attract a loan from the World Bank for up to US$1 billion to mitigate impact of the liberalization of the foreign exchange market on enterprises of the real sector and the social sphere.

President of Uzbekistan Shavkat Mirziyoyev discussed the issue of attracting funds with World Bank President Jim Yong Kim in New York on 20 September.

On 27 September, the President of Uzbekistan signed a resolution “On measures to further strengthen and develop cooperation between the Republic of Uzbekistan and the UN and its structures, international financial institutions and other foreign policy partners”.

According to the document, the parties will begin discussing the preliminary terms of the loan in November 2017. It is expected that the draft agreement should be submitted for approval to the Board of Directors of the World Bank in the second-third quarters of next year.

President of Uzbekistan Shavkat Mirziyoyev signed a decree “On priority measures for liberalization of monetary policy” on 2 September 2017.

According to the document, from 5 September, resident-citizens of Uzbekistan are able to sell foreign currency at exchange rates at the market rate and purchase it for conversion cards for use abroad without any restrictions.

From 5 September, legal entities of Uzbekistan can purchase foreign currency in commercial banks without restrictions for payment on current international transactions, including import of goods, works and services, repatriation of profits, repayment of loans, payment of travel expenses and other transfers of non-trade nature.

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