Why is this important
The rise in public debt highlights the increasing need for external funding for budget support and infrastructure projects. Simultaneously, reliance on the dollar in the debt structure is decreasing, which reduces currency risks — an important trend.
What happened
- Debt to GDP fell from 35% to 34.2%.
- External debt increased by $2.68 billion in six months to $36.41 billion; domestic debt rose by $0.47 billion to $6.96 billion.
- In the structure of external debt, 84% were borrowings denominated in foreign currency, with a share in dollars decreasing from 71% to 68%; euro — 10%, yen — 8%; issuance of sum Eurobonds increased the share of soums to 3%.
- In domestic debt, the proportion of borrowing in the national currency rose from 48% to 58%, while in dollars it fell from 48% to 38%.
- Main directions of external debt: budget support — $16.9 billion; TEC — $5.9 billion; the agro-industrial complex and water management sector — $3.1 billion; housing and communal services — $3 billion; transport — $2.9 billion.
- Creditors: World Bank — $7.8 billion; Asian Development Bank — $7.4 billion; investors in Eurobonds — $5.7 billion; China — $3.8 billion; Japan — $3.2 billion; AIIF — $1.7 billion; France — $1.1 billion; Islamic Bank – $935 million; Korea — $750 million; IMF — $642 million; Germany — $481 million; EBRD — $401 million; and others — $2.5 billion.
- The country’s total external debt (public and private) against the backdrop of active dollar substitution is $68.4 billion in the first quarter of 2025.
What they say
The government aimed to raise $5.5 billion in external debt in 2025, with $3 billion allocated for covering the budget deficit and the rest for investment projects.
Context
The growth of public debt is accompanied by active external financial activity, including Eurobonds, and a gradual shift towards borrowing in the national currency. So’m-denominated bonds reduce currency risk and reflect investors’ confidence in the Uzbek economy. Debt remains substantial, but its structure is becoming more diversified and manageable.
