Finance Ministry: Uzbekistan’s external debt increased by $3.2 billion in H1 2019

On August 30, the Information and Mass Communications Agency held a press conference on the topic “Effective State debt management”.

The conference was attended by Deputy Finance Minister of Uzbekistan Odilbek Isokov, Head of the Internal and External Debt Department Jasur Karshiboyev and other officials in the sphere.

During the event, information on the State external debt was presented.

It was noted that at the beginning of the year, the State external debt was $9.9 billion, in the first six months this figure became $13.1 billion. This accounted for 23.5% of GDP. These funds were mainly attracted from creditor states (China, Japan, Germany, etc.) and international financial institutions (Asian Development Bank, World Bank and Islamic Development Bank). Loans are mostly long- and medium-term, with only interest rates repaid during the grace period and not the amount of debt. In February, international sovereign bonds of Uzbekistan for $1 billion were put on the international financial markets. Of these, $90 million was given to the Navoi Mining and Metallurgical Combine in the form of budgetary loans, the rest of the deposits were placed in the form of deposit to banks through auction.

As of June 30, domestic debt is estimated at $5.4 billion. Of these, 97% were guaranteed by the government and 3% were attracted by the government.

Reportedly, since December of last year, government bonds have been on sale in the domestic capital market. In the first half of the year, bonds worth 850 billion soums were offered for 1-3 years.