BAKU, Azerbaijan, Jun. 25
By Nargiz Sadikhova - Trend:
The Asian Development Bank (ADB) approved a $500 million loan to help Uzbekistan’s Government mitigate the adverse health and economic impacts of the coronavirus pandemic, Trend reports with reference to the ADB.
The report said that sharp contraction in global economic activity due to the pandemic and wide-ranging containment measures introduced in Uzbekistan have caused growth projections to drop to 1.5 percent this year from 6 percent forecast before the pandemic.
“Around 80 percent of small and medium-sized enterprises (SMEs) suspended their activities following the nationwide lockdown, and unemployment is expected to jump to 16.5 percent this year from 9.4 percent in 2019,” the report said.
ADB’s COVID-19 Active Response and Expenditure Support (CARES) Program will help to fund the government’s comprehensive COVID-19 pandemic response plan.
“The program will strengthen the readiness of the country’s health care system by helping procure medical supplies such as ventilators, testing kits, and appropriately sized personal protective gear, including individual packages for female health workers. It will also help prepare additional hospitals, diagnostic laboratories, and quarantine complexes for dealing with COVID-19 cases. Health workers who are on the frontlines of combating the pandemic will be supported through salary supplements in the form of hazard pay,” the report said.
The loan is expected to support initiatives to help businesses affected by the downturn and minimize job losses.
“These include tax measures and loan repayment deferments to support SMEs, of which around 40 percent are owned or managed by women. Additional capital for the State Fund for Support of Entrepreneurship will enable it to provide loan guarantees to SMEs. Small-scale public work will be funded in the regions to help create temporary jobs, 75 percent of which will employ members of low-income households,” the report said.
The loan will also help expand Uzbekistan’s existing social protection system during the pandemic.
The loan is funded through the COVID-19 pandemic response option (CPRO) under ADB’s Countercyclical Support Facility.
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