As of early 2024, the public debt rose to $34.9bn, reflecting a $5.7bn increase from the previous year and exceeding the expected figure by $2.8bn, as reported by the Ministry of Finance. This amount constitutes approximately 38.4% of Uzbekistan's gross domestic product (GDP).
Uzbekistan's public debt comprises both external and domestic debts. External debt amounts to $29.6bn, equivalent to 29.6% of the country's GDP, while domestic debt stands at $5.3bn, accounting for 5.3% of GDP.
Government-raised debt amounted to $23.91bn, with an additional $5.72bn guaranteed by Uzbekistan.
International financial institutions financed Uzbekistan's development, with the World Bank and the Asian Development Bank extending loans of $6.6bn and $6.4bn, respectively. Other major creditors are the Islamic Development Bank ($0.9bn), international investors ($3.4bn in Eurobonds), the Japan International Cooperation Agency ($2bn), and the Eximbank of China ($1.9bn).
Bonds, particularly those issued internationally, constituted a substantial portion of the debt portfolio, amounting to $3.4bn.
Currency denomination emerged as a critical factor, with 71.4% of external debts denominated in US dollars, followed by Uzbek soums at 6.9%, Japanese yen at 6.2%, and others comprising smaller percentages.
Domestically, public debt rose to $5.29bn, reflecting an increase from $3.32bn in 2022. The government securities accounted for $1.78bn of this debt, while the remaining $3.51bn represented state-guaranteed domestic debt.
Servicing the burgeoning debt proved financially demanding, with Uzbekistan disbursing $2.82bn in 2023 for debt servicing. This included $1.69bn for debt repayment and $1.12bn for interest payments, driven in part by an increase in international bond interest rates.
The allocation of debt across sectors showcased a strategic focus on budget support and energy, which together accounted for nearly half of the total debt. Support for the state budget witnessed a substantial increase, rising from $8.6bn in 2022 to $11.6bn in 2023.
Looking ahead, Uzbekistan faces the challenge of managing its debt burden while balancing developmental needs and fiscal sustainability. With plans to repay UZS 32.27 trillion ($2.6bn) of debt and allocate UZS 16.38 trillion ($1.3bn) for interest payments in 2024, representing 3.7% of GDP, prudent fiscal management will be imperative.
The nation's fiscal dynamics are stressed by a record budget deficit of UZS 59 trillion ($4.7bn) in 2023, necessitating strategic measures to address expenditure priorities and revenue enhancement.
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