19:41 / 22.05.2024

Uzbekistan sees significant increase in state-guaranteed foreign loans

From January to March 2024, the amount of foreign loans obtained under the state guarantee reached 5.2 trillion UZS. This represents a 2.7-fold increase compared to the corresponding period in 2023, with the state budget deficit reaching nearly 20 trillion UZS in the first quarter.

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In the first three months of 2024, the foreign loans secured under the guarantee of the state amounted to 5.2 trillion UZS, which is 2.7 times more than the same period in 2023, the Statistics Agency reported.

According to the agency, the share of foreign loans under state guarantee in the total volume of investments has risen by 1.2 percentage points, amounting to 4.8 percent.

For context, in January of the current year, the state budget deficit amounted to 5.7 trillion UZS, in February to 7.2 trillion UZS, in March to 6.8 trillion UZS, with the overall quarterly deficit being 19 trillion 884.8 billion UZS.

Previously, the Central Bank's "Monetary Policy Report for the First Quarter of 2024" highlighted the high growth rates of investments directed towards fixed capital, which constituted 44 percent of the Gross Domestic Product (GDP), compared to an average indicator of around 30 percent in previous years.

Additionally, Central Bank Chairman Mamarizo Nurmuratov has mentioned that by mid-2024, a decrease in global borrowing rates is expected, which would expand the attraction of external debt without state guarantees.

It should be recalled that on May 17, the Uzbekistan government issued its next series of sovereign international bonds. The total value of the new bonds, issued in three different currencies, amounts to $1.5 billion.

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