Uzbekistan sets net volume limit for attracting external borrowings

Finance Materials 2 April 2021 14:29 (UTC +04:00)
Uzbekistan sets net volume limit for attracting external borrowings

BAKU, Azerbaijan, Apr. 2

By Klavdiya Romakayeva - Trend:

The amount of public debt raised on behalf of Uzbekistan and under the guarantee of Uzbekistan should not exceed 60 percent in relation to the annual forecast indicator of gross domestic product, Trend reports referring to the Ministry of Finance of Uzbekistan.

It is reported that a net limit established for newly signed agreements on attracting internal and external borrowing on behalf of Uzbekistan and under the guarantee of Uzbekistan for a total amount of $5.5 billion, including $2.2 billion to finance the deficit of the state budget (including state securities - 5 trillion soums - $477 million), for financing investment projects - $3.3 billion.

According to the ministry, the size of the external public debt in Uzbekistan as of January 1, 2021, amounted to $21.1 billion, or 36.5 percent of GDP. Despite the growth in recent years, according to international standards, the external public debt of the country remains at a moderate level.

It was noted that the borrowed funds received by the state are mainly directed to the development of the backbone sectors of the economy - energy, transport, engineering and telecommunications, chemical, education, agriculture and healthcare.

In particular, at the end of 2020, 14.6 percent, or $3.1 billion, was directed to the electric power industry, 12.4 percent, or $2.6 billion - to the oil and gas industry, 11.5 percent, or $2.4 billion - development of transport and transport infrastructure, 9.4 percent, or $2 billion - housing and communal services.

The international organizations that provide borrowed funds for Uzbekistan include the Asian Development Bank ($5 billion), the World Bank ($3.7 billion), the Japan International Cooperation Agency, the Eximbank of China and the China State Development Bank ($2 billion each), international investors ($1.7 billion).

Earlier, in his message to the Oliy Majlis (Parliament), the president of Uzbekistan noted that in 2021, external borrowing under the state guarantee will decrease, and more private capital will be attracted to investment and infrastructure projects.

He also said that it is planned to start the implementation of more than 40 large and medium-sized projects on the basis of public-private partnerships.


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