Uzbekistan’s external debt grows

The Central Bank published data on the balance of payments and international investment position, as well as the total external debt of Uzbekistan for the first half of 2019.

The regulator said that over the first half of the year, the state’s external debt increased sharply and it is expected that the growth trend will continue until the end of 2019.

“This process is explained by the attraction of new external borrowings to finance state programs for the development of economic sectors and regions,” the Central Bank said.

Reportedly, as of July, 2019, the total external debt of Uzbekistan amounted to $20.7 billion, an increase of 20% ($3.4 billion) compared to the beginning of the year. It should be noted that total external debt includes debts provided by parent companies.

The regulator said that the state’s external debt consists of debt attracted by the state and debt received under the state’s guarantee. Moreover, private external debt consists of external borrowings of business entities, including state enterprises, not guaranteed by the state.

An increase in debt in the first half of 2019 mainly accounted for the public sector ($3.1 billion).

Private sector debt increased by $330.3 million as a result of increased borrowings by banks and other sectors of the economy.