Uzbekistan sets public debt threshold at 60% of GDP

By Muzaffar Ismailov in Tashkent May 2, 2023

The upper limit of Uzbekistan’s national debt this year is to not exceed 60% of projected GDP, according to a decree inked by the country’s president Shavkat Mirziyoyev on April 29.

According to IMF assessments, this level is considered safe. Last year, Uzbekistan's public debt expanded by $2.9bn to $29.2bn, or to 36.4% of GDP. More than 90% of the debt was raised in foreign currency. 

The Oliy Majlis (Parliament) sets limits on the size of the state debt and limits on guarantees provided under public-private partnership agreements. The procedure for external borrowing is approved by the president.

The economy and finance ministry is appointed as the responsible body for the general management of the national debt. Among other things, its duties include:

  • developing a draft strategy for public debt management for the next three years;
  • making proposals for setting borrowing limits and guarantees;
  • registration of state guarantees and submission of conclusions on the expediency of their issuance;
  • provision of public debt service;
  • issue of government securities and treasury bonds (together with the central bank);
  • management of public debt-related risks.

The state debt is divided into the external (received from foreign and international creditors) and internal (raised from internal sources). There are also short-term (up to 1 year), medium-term (up to 5 years) and long-term types of debt.

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