Uzbekistan’s gross external debt rises 20% to $82.2 billion

The country's total external debt stood at $68.4 billion in the first quarter of 2025, meaning the outstanding balance has grown by nearly $13.8 billion over the past 12 months.

The Central Bank said $40.5 billion of the total represents public external debt, while $41.7 billion is corporate external debt. Over the year, public external debt increased by $4.7 billion, whereas corporate borrowing rose by $9.1 billion, accounting for most of the overall increase.

The regulator noted that corporate external debt includes loans raised by private sector companies, including businesses that borrow without state guarantees.

"Corporate external debt does not create obligations for the government. Debt servicing is carried out by companies and banks using their own funds," the Central Bank said.

Despite the annual increase, the debt stock remained virtually unchanged during the first three months of 2026. According to the Central Bank's calculations, Uzbekistan's gross external debt stood at $82.2 billion both at the beginning and the end of the January–March period.

The regulator also reiterated the International Monetary Fund's assessment that Uzbekistan's external debt burden remains low, emphasizing that much of the country's borrowing has been secured on concessional terms.

Under Uzbekistan's 2026 state budget law, the government may borrow up to $5 billion in external financing on behalf of the state during the year. Half of that amount is intended to finance the budget deficit, while the remaining $2.5 billion is earmarked for investment projects.

Public debt largely used for budget support and infrastructure

Of the country's $40.5 billion in public external debt, $19.7 billion has been used to finance the state budget deficit.

According to official data, the remaining funds have primarily been directed toward infrastructure and development projects. The fuel and energy sector received $5.6 billion, followed by $3.3 billion for agriculture and water management, $3.2 billion for housing and utilities, and $3 billion for transport.

Another $3.6 billion has been allocated to healthcare, education, information and communication technologies, and other sectors. In addition, $624 million has supported entrepreneurship, while $607 million has been directed toward developing the chemical industry.

World Bank remains the largest creditor

International financial institutions account for $22.3 billion, or 56%, of Uzbekistan's public external debt.

The World Bank remains the country's largest creditor, with outstanding loans totaling $9.04 billion. It is followed by the Asian Development Bank, with $8.3 billion in outstanding financing.

Uzbekistan also owes $2.3 billion to the Asian Infrastructure Investment Bank and $1.1 billion to the Islamic Development Bank.

Another $11.6 billion, equivalent to 29% of public external debt, has been borrowed from foreign government financial institutions. Chinese lenders account for $3.9 billion of that amount, while the Japan International Cooperation Agency and other Japanese institutions have provided $3.1 billion.

The government has also raised $5.8 billion through sovereign bond issuances in international capital markets.