The Executive Board of the International Monetary Fund (IMF) approved the disbursement of SDR 275.6 million (50 percent of quota, about US$375 million) under the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI) to Uzbekistan on May 18, EDNews.net reports citing AKIpress.

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, IMF said.

The crisis has adversely affected Uzbekistan’s macroeconomic outlook. Growth is projected to slow to 1½ 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 4 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 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. The IMF stands ready to provide policy advice and further support, as needed.