In the context of the accelerated integration of our country into the world financial system, to maintain the public debt at a safe level is one of the main factors for promoting macroeconomic stability in the country.

Despite the fact that according to international criteria, the public debt of the Republic of Uzbekistan (hereinafter — the State Debt) is currently at an "acceptable" level, nowadays it is essential to create mechanisms that ensure the credit rating stability of Uzbekistan's sovereign debts and a safe level of State Debt.

At the same time, the current priorities are (i) to determine the annual upper thresholds for State Debt, (ii) to identify priority areas while selecting projects to be financed from using the State Debt and establish systemic monitoring of such projects implementation, and (iii) implement transparent and effective results-measurement mechanisms.

In order to improve the system of State Debt management based on international standards, maintain State Debt at a safe level for macroeconomic stability and ensure the effective use of attracted loans, the Cabinet of Ministers hereby resolves:

  1. Summarized as follows:

The Ministry of Finance of the Republic of Uzbekistan with technical support from the World Bank and the International Monetary Fund has developed a medium term strategy for managing State Debt;

the medium term strategy for managing State Debt shall be annually approved by the Cabinet of Ministers of the Republic of Uzbekistan taking into account macroeconomic changes and foreign factors in the country;

according to the estimates of the Ministry of Finance, on the basis of International Monetary Fund norms, the upper threshold of the State Debt shall not exceed 50 percent with respect to GDP in order to promote macroeconomic stability;

it is notable that the Law on State Budget of the Republic of Uzbekistan for 2020 sets forth the upper threshold for all new foreign loan agreements signed during 2020 on behalf of the Republic of Uzbekistan (the Government of the Republic of Uzbekistan) or under the guarantee of the Republic of Uzbekistan at the amount of USD 4 billion, as well as the upper threshold for foreign loan drawdowns at USD 1.5 billion repayable from the state budget.

  • 2. It shall be established that the following priority goals are strictly observed in effective State Debt management:

guaranteeing full and timely State Debt servicing;

maintaining State Debt at a safe level to promote macroeconomic stability, diversifying and reducing the risk of overspending on State Debt servicing;

identification of programs financed from using the State Debt that do not require the development of preliminary project documentation and technical-economic basis (hereinafter - the Program) owing to Programs' socio-economic and strategic importance and the need to develop industrial and social infrastructure;

promotion of targeted and effective use of the State Debt by ensuring the effectiveness, selfsustainability of projects and programs financed from using the State Debt, and transparency of data on their implementation;

gradual shift of legal entities and banks, in which the state has a stake of 50 percent or more, to market-based financing;

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