As of July 1, 2023, Uzbekistan's national debt amounted to $31.5 billion, or 36.8% of the GDP, the press service of Uzbekistan's Ministry of Economy announced.
Out of this amount, the external debt is $25.9 billion, and the internal debt is $5.6 billion. By comparison, on January 1, 2023, this figure was $29.2 billion, with the debt-to-GDP ratio being 36.4%.
Regarding external debt, the largest amounts are owed to China ($3.8 billion), Japan ($2.1 billion), and South Korea ($0.9 billion). In terms of international financial organizations, the largest debt was attracted from the Asian Development Bank ($6.2 billion), the World Bank ($5.6 billion), and the Islamic Development Bank ($0.9 billion).
In 2023, the total value of signed agreements will be $4.5 billion, with $2 billion allocated to support the state budget, which is $500 million less than the previous year. Another $2.5 billion will be directed towards financing investment projects, which is $500 million more than the previous year.
According to the law, the maximum size of the national debt in relation to the GDP should not exceed 60%. In the context of ensuring the stability of macroeconomic and fiscal indicators in the medium term, the debt-to-GDP ratio is forecasted to be within 37% in 2024, 37.4% in 2025, and 37.9% in 2026.
In order to maintain the national debt at a safe level and effectively manage it in the medium term, the Ministry of Economy of Uzbekistan has planned the following measures:
- Continuing the practice of setting annual limits on the national debt.
- Reducing currency risks by attracting borrowed funds in the national currency. While setting the maximum net volume of government treasury bonds issued in 2024 at 25 trillion Uzbekistani soms.
- Extending the average debt maturity and diversifying the national debt sources.
- Accelerating the process of attracting international investors to the government bond market.
- Preventing, eliminating, or reducing risks related to debt servicing.
- Ensuring transparency of information regarding the national debt.
CentralasianLIGHT.org
November 8, 2023