“We are expecting expansion of foreign debt attraction without the state guarantee” – Mamarizo Nurmurodov

At its first meeting in 2024, the central bank board decided to leave the key rate unchanged at 14% per annum. After the meeting, a press conference was held with the participation of Mamarizo Nurmurodov, the CB board chairman.

Nurmurodov, answering the question about foreign debts, noted that in 2024, the government of Uzbekistan plans to take foreign loans in the amount of $5 billion.

“In addition, there is foreign debt that is not guaranteed by the state. This is the debt attracted by business entities, industries, and banks. A certain decrease was observed in 2023 compared to the previous year against the background of tightening conditions in foreign markets. From 2024, due to the decrease in interest rates, we expect the system of attracting foreign loans without state guarantees to expand further. It will be difficult for us to achieve 6 percent economic growth relying only on domestic resources and savings. That’s why we attract funds from foreign markets only creates the ground for our economic growth,” he said.

The head of the regulator added that in 2023, 14 billion dollars of debt was attracted to the banking sector, while the cost of servicing debts during the year amounted to $12 billion.

For information, according to the government’s plans, $2.5 billion of the $5 billion of the state external debt to be received in 2024 will be directed to support the state budget, and $2.5 billion to investment projects. It is planned to issue 25 trillion soums worth of state securities on behalf of the Republic of Uzbekistan.

It should be recalled that in October 2023, Uzbekistan issued a sovereign Eurobond worth 660 million dollars at an interest rate of 8.125%. Also, at that time, the government for the first time placed “green” sovereign international bonds worth 4.25 trillion soums in the national currency on the London Stock Exchange.