Thursday, 28 October 2021 05:04 GMT

Uzbekistan's external debt hits new record


(MENAFN- Trend News Agency ) The volume of the total external debt of Uzbekistan as of July 1, 2021, for the first time reached $35.9 billion, an increase in six months by 6 percent, or by $2 billion, Trend reports citing Central Bank.

This amounts to about 57 percent of GDP.

Total external debt includes government and external public debt, as well as private sector debt.

In the first half of the year, public sector debt increased by $627.9 million (+ 3 percent) and amounted to $22 billion. The growth is explained by the attraction of new external borrowings and payments on them, as well as the decline in the prices of bonds placed on the international financial markets and changes in rates.

Private sector debt increased by $1.4 billion (+ 11 percent), mainly due to increased borrowing by banks and other sectors.

In just six months, the public sector attracted loans totaling $1.2 billion, and the private sector - for $3.2 billion. Borrowing was mainly carried out by banks - $1.6 billion. including the oil and gas and energy sector which attracted $379 million and enterprises from other sectors of the economy - $1.2 billion.

At the same time, the main reason for the significant growth in the“other sectors” component compared to last year is the issuance and placement of UzAuto Motors securities in the international financial markets with a par value of $300 million at 4.85 percent for a period of 5 years.

Following the results of six months, the state debt was repaid for $429 million: $353.4 million for the principal debt and $206.5 million for interest.

Payments on private external debt amounted to $1.6 billion in principal and $238.8 million in interest.

Deputy Finance Minister Akhadbek Khaidarov noted that after a sharp increase in state budget expenditures due to the crisis in 2020, it is now planned to reduce the indicator to the pre-crisis level - to 27 percent of GDP. In addition, in the coming years, the government plans to keep the level of public debt at around 50 percent, and the budget deficit at around 2 percent.

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