TASHKENT, March 25 (Xinhua) -- The World Bank has approved a loan worth 200 million U.S. dollars to support micro, small and medium-sized businesses in one of Uzbekistan's densely populated rural areas, the bank said on Monday.
According to a statement, the loan will come from the International Bank for Reconstruction and Development, a member of the World Bank Group, and will help to start a new rural enterprise development project in the eastern Ferghana Valley.
"The shift from planned to market economy in Uzbekistan will create opportunities for local small businesses in domestic and regional markets," said Hideki Mori, World Bank country manager for Uzbekistan, in the statement.
"With nearly 49,000 micro and small firms and 84,000 commercial farms and individual entrepreneurs in Ferghana Valley, the World Bank is pleased to support this project, which will help them expand, improve profitability and create up to 20,000 new jobs," Mori said.
Recognizing the need to reform the economy and find new drivers of growth, the Central Asian country is placing emphasis on accelerating private sector development to create jobs and increase people's income, the statement said.
The micro, small and medium-sized enterprises sector represents nearly 50 percent of the country's gross domestic product. In 2017, around 78 percent of the working force worked in small companies while 27 percent were employed in the agricultural sector.
