A decision was made to limit the volume of external debt in the amount of 60% of GDP at the legislative level in Uzbekistan, Interfax reports.
This norm is enshrined in the law "On public debt", adopted by the parliament and signed by the President of Uzbekistan Shavkat Mirziyoyev. The text of the document provides that the law will come into force three months later, on August 2, 2023.
"The size of the state debt should not exceed 60% of the annual forecast indicator of gross domestic product," the text of the law says. Previously, this indicator was not regulated by a separate law.
In accordance with the document, when the state debt reaches 50% of GDP, the government must submit to parliament a proposal on measures to stabilize the situation.
The authorized body for public debt management is the Ministry of Finance of Uzbekistan.
The adopted law also contains rules regarding the procedure for issuing a state guarantee, the circumstances under which such guarantees are not provided, the obligations of resident borrowers, and the termination of the state guarantee.
According to the statistical authorities of Uzbekistan, as of January 1, 2023, the country's public debt reached $29.2 billion (11% growth over the year), or 36.4% of GDP. The international rating agency Fitch Ratings expects the republic's public debt to GDP ratio to stabilize at an average of 36.4% in 2023-2024.
On May 1, 2023, Uzbekistan entered a new path of its development after the adoption of a new version of the Constitution. It was updated by 65% and supported by 90% of the country's voters.
CentralasianLIGHT.org
May 3, 2023