International Monetary Fund provides additional support to Uzbekistan
BAKU, Azerbaijan, May 19
By Ilkin Seyfaddini - Trend:
The Executive Board of the International Monetary Fund (IMF) approved the disbursement of Special Drawing Rights (SDR) 275.6 million (50 percent of quota, about $375 million) under the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI) on May 19, 2020, Trend reports with reference to IMF.
This will help to meet Uzbekistan’s increased need for fiscal and urgent balance of payments financing arising from the impact of the COVID-19 crisis, the message said.
The crisis has adversely affected Uzbekistan’s macroeconomic outlook. Growth is projected to slow to 1,5 percent this year and lower revenues and additional crisis-related expenditures - on healthcare and to support households and firms - are expected to widen the fiscal deficit to about four percent of GDP.
IMF and other donor support will help cover the resulting financing needs, support the economy, and provide assistance to affected households and firms. The authorities will increase the accountability and transparency of expenditures to improve the efficiency and safeguard the use of public resources, the message said.
The authorities’ policies are expected to maintain macroeconomic stability and fiscal and balance of payments’ sustainability over the medium-term. They have expressed their strong commitment to continue economic and structural reforms.
“IMF financial assistance under the RCF and the RFI, along with support from other multilateral institutions, will help cover Uzbekistan’s fiscal and balance of payments needs and mitigate the impact on its foreign exchange reserves. It will also provide resources to support increased crisis spending for healthcare, social protection, and public support for affected firms and households," said Tao Zhang, IMF's Deputy Managing Director and Chair.
“Uzbekistan aims to continue implementing its structural reform agenda, to complete the transformation to a modern, open market economy, and to improve governance and public management. It has committed to safeguard the use and improve the efficiency of its public resources by increasing transparency and accountability,” he added.
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