Manila, Jul 31 (IANS): The Asian Development Bank (ADB) said Wednesday that it has approved two policy-based loans totaling 400 million U.S. dollars to support Uzbekistan's initiatives to enhance its financial markets and develop a sustainable, market-led power sector.

A loan of 300 million dollars for subprogramme 2 of the Power Sector Reform Programme provides budget support for policy actions to improve the power sector's structure, legal and regulatory framework, and governance to encourage private sector investment and promote financial sustainability.

A loan of 100 million dollars for subprogramme 2 of the Financial Markets Development Programme supports regulatory and institutional reforms on improving market facilitation to streamline financial transactions and services as well as increasing supply and demand measures to grow Uzbekistan's capital and money markets.

"Strong participation of the private sector is vital to Uzbekistan's economic growth and transformation," said ADB Director General for Central and West Asia Yevgeniy Zhukov, Xinhua news agency reported.

"Reforms supported by these programs will help shape an enabling environment for regulators and firms to play their part in boosting development by building robust domestic financial markets and addressing energy needs while tackling climate change," said Zhukov.