External debt up in Uzbekistan
BAKU, Azerbaijan, Sept. 24
By Klavdiya Romakayeva - Trend:
The total external debt of Uzbekistan as of July 1 amounted to $27.6 billion, an increase compared to the beginning of the year by 12.7 percent, or $3.1 billion, Trend reports referring to the Central bank of Uzbekistan.
According to the statement of the Central bank, in the 1H2020, the public external debt also maintained an upward trend. This process is explained by the attraction of new external borrowings to mitigate the socio-economic impact of the crisis caused by the spread of the COVID-19 virus and to finance government programs for the development of economic sectors and regions.
Public external debt amounted to $17.47 billion, having increased by almost $1.7 billion over six months, of which $1 billion falls on international bonds.
The share of private debt, which consists of loans provided by foreign parent companies, amounted to 37 percent, or $10.1 billion. In particular, $4.6 billion, or 45 falls on the banking sector, $4.4 billion (43 percent) on the oil and gas and the energy sector.
Due to the global pandemic and the slowdown in economic activity, the market value of Uzbekistan's sovereign bonds decreased compared to the beginning of 2020 as a result of lower quotations on international financial markets.
The debt of the private sector increased by $1.4 billion, mainly due to increased borrowing by banks. So, in the first half of the year, banks attracted $1.8 billion, textile enterprises attracted $71 million, and enterprises of other sectors of the economy attracted $154 million.
During the reported period, Uzbekistan paid off a debt in the amount of $980 million and interest for $363 million.
The bulk of the debt amounted to $20.3 billion was taken for a period of more than 10 years.
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