Financial Markets Development Program (Subprogram 2) (ADB-53161-003)

Countries
  • Uzbekistan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 31, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Uzbekistan - Ministry of Economy and Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 4,142.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 12, 2024

Disclosed by Bank Jul 31, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the program will support regulatory and institutional reforms, including enhancements to financial market infrastructure, by focusing on three key areas: (i) improving market facilitation to streamline financial transactions and services, (ii) increasing demand measures to boost consumer and institutional engagement with financial services, and (iii) enhancing supply measures to ensure a more robust provision of financial products and services. It will contribute to the acceleration of the country's transition toward a market economy by developing its financial market to finance the real economy, which is moving from a state-led and -dominated model to one oriented on the market and the private sector. The program supports the development of capital market instruments to mobilize private sector and sustainable finance.

The government adopted its medium-term plan, Development Strategy for the New Uzbekistan 2022-2026, and its long-term plan, Uzbekistan 2030 Strategy, which prioritizes the country's transition toward a social market economy. Both strategies recognize the central role played by the banking sector and financial markets in fostering this transition, reinforcing the policy actions achieved under subprograms 1 and 2, and ADB's non-sovereign operations that support micro, small and medium-sized enterprises, agriculture borrowers, microfinance institutions, and trade and supply chain finance. The Uzbekistan 2030 Strategy tasks the government with modernizing and developing financial markets to better address the financing needs of the real economy, which is moving away from an economy led and dominated by the state toward a model that is market-oriented and led by the private sector.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Reforms under the program do not anticipate any direct or indirect environmental impacts, will not cause involuntary resettlement, and will have no impacts on indigenous peoples. The program is classified category C for environment, involuntary resettlement, and indigenous peoples.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The government has requested a regular loan of $100 million from ADB’s ordinary capital resources to help finance subprogram 2. The loan will have a 15-year term, including a grace period of 3 years; an interest rate determined in accordance with ADB’s Flexible Loan Product; a commitment charge of 0.15% per year; and such other terms and conditions set forth in the draft loan agreement. Based on the straight-line method, the average maturity is 9.25 years, and there is no maturity premium payable to ADB.

According to the MOEF, the government’s financing requirement (overall fiscal deficit) is projected to be $4,142 million (4.0% of GDP) in 2024.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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How it works