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Deputies propose solution for reducing public external debt
On May 26 this year, at a meeting of the Milliy Tiklanish Democratic Party faction in the Legislative Chamber of the Oliy Majlis, the Cabinet of Ministers reviewed reports “On the execution of the State budget program and budgets of state trust funds in 2019” and “On the execution of the state budget program and state budgets trust funds in the first quarter of 2020.”
Photo: Brent Lewin / Bloomberg
“Deputies also noted that due to the growth of public external debt and the reduction of domestic debt, the mechanisms of alternative economies are not fully used. By 2019, the country’s external debt reached $9.9 billion, and internal - $4.8 billion,” the press service of the Lower House said.
According to the State Statistics Committee, the volume of the total external debt of Uzbekistan amounted to $24.4 billion on January 1, 2020, i.e. it has increased by 40.9% or by $7.1 billion since the beginning of 2019.
The increase in debt during 2019 was mainly attributable to the public sector ($5.7 billion), of which $1 billion were international bonds. Private sector debt increased by $1.4 billion as a result of increased borrowing through banks and other sectors of the economy.
According to deputies, public debt can be optimized through increasing the share of domestic debt – as a result of the development of the government securities market.
“The deputies noted that this method is important for maintaining the country’s foreign political independence and developing the national economy, emphasizing that the government should pay attention to this issue,” the press service added.
