In Uzbekistan, a law has been drafted to control the growth of state debt and ensure its preservation. The draft law has been considered by the MPs in the second reading at the regular session of the Legislative Chamber of the Oliy Majlis (Parliament) today, 29 March.
It was noted at the meeting that the draft law «On the state debt» is based on the best international experience. It highlights four main directions.
-The first direction: the management of state debt in accordance with international standards, increasing the role of parliament in this process, preserving it safe for macroeconomic stability;
-The second direction: ensuring timely and guaranteed servicing of domestic and external public debt;
-The third direction: diversifying state debt and reducing the risk of rising service costs;
-The fourth direction: improving the mechanism of state guarantees.
MPs noted that the adoption of the bill would prevent the fragmentation of the state debt management process; effective mechanisms would be introduced to manage the risks of public debt and contingent liabilities, as well as to ensure a timely and full state debt service.
In addition, the bill will serve to improve the position of the Republic of Uzbekistan in international ratings, ensure macroeconomic stability, effective use of debt and the management of state debt risk.
The draft has been approved on second reading.