Uzbekistan’s external debt drops for first time in years

The total external debt of Uzbekistan decreased for the first time in the last few years. This was announced by the Central Bank in a report for the first quarter of 2022.

As of April 1, the external debt was approximately $38.84 billion - $721.5 million or 1.8% less than it was at the beginning of the year. Both the volume of state credits and the debt of the private sector decreased.

The regulator explains the reduction of external debt by a slowdown in attracting new borrowings. It, in turn, was caused by the unstable geopolitical situation in the world.

The state's external debt is equal to $23.39 billion, having decreased by $345.4 million (-1.5%) over three months. Most of this amount - $ 211.5 million - fell on international bonds.

At the same time, Eurobonds make up only a tenth of the public debt of Uzbekistan and 6% of the total debt to external creditors. According to the Central Bank, the reason was the fall in the value of government securities.

The volume of foreign debts of the private sector fell by $376 million (-2%) and amounted to $15.5 billion by April. The strongest reduction in external debt was observed in the banking sector.

The indicator decreased by $216 million in the oil and gas sector, by $37 million - in the mining and metallurgical sector. It was in these industries that debt obligations were repaid, the Central Bank noted.

At the same time, the private sector attracted $1.2 billion in loans. In particular, banks received $389 million in loans, mining enterprises - $217 million, and the energy sector - $171 million. In some industries, for example, textiles, external debt showed moderate growth.

Payments on private debt in January-March amounted to $1 billion, interest - another $110 million. The state at that time repaid debts for $252 million, and also paid $127 million in interest.