Uzbekistan has reached an agreement with the Government of Japan for a loan to support its economic and social development programs, according to the Japan International Cooperation Agency (JICA), Azernews reports, citing Kun.uz news agency.

The agreement was signed by Ilhom Norkulov, First Deputy Head of the Ministry of Finance and Economy, and Yoshibumi Bito, the Chief Representative of JICA in Uzbekistan. The loan amount will be 37 billion Japanese yen (equivalent to $246.2 million).

The loan is provided for a period of 30 years, including a grace period of the first 10 years. The interest rate is set at 1.8% per annum.

The loan funds are intended to back reforms aimed at developing a market economy within the republic. A portion of the funds will also be expended on assistance programs for vulnerable segments of the population and social inclusivity.

As noted in the announcement, from 1993 to 2021, Uzbekistan received around $1.5 billion from JICA for the implementation of its initiatives. One of the recent loans from JICA included a $200 million loan designated for projects in the livestock and leather industries.

Key sectors for the agency include economic infrastructure and rural development. Additionally, it plans to assist Tashkent in energy and healthcare sectors.