Monitoring of external debt management is strengthened
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12 March 2022 4820
Resolution 107 of Cabinet of Ministers of 9 March “On measures to improve the procedure for attracting external debt of state enterprises” has been adopted. This is reported by the agency "Norma".
According to the decision, from 1 May 2022:
- in order to regulate the attraction of external debt and its provision, state enterprises are automatically classified as «low risk», «medium risk» and «high risk» depending on their financial condition;
- the amount of external debt raised is reflected in business plan of the State-owned enterprises.
Measures focus on establishing control over the use and attraction of foreign debt from state unitary enterprises and business entities with a state share of 50% or more in the authorized capital and legal entities with a state share of 50% or more in the authorized capital.
The document states the followings:
• the upper limit of the cost of servicing the external debt (interest rates, commissions and other payments), attracted by state enterprises is determined by the Republican Commission for ensuring open and transparent public procurement (hereinafter – the Commission) quarterly;
• the consideration of the feasibility study and other documents of projects financed based on the external debt of State enterprises by the competent authorities shall be carried out after the submission of a positive conclusion to the Republican Commission or documents confirming its notification.
The resolution approved the enactment on the procedure of external debt collection by State enterprises. The enactment regulates the procedure for obtaining permission from the Republican Commission for attracting foreign loans and monitoring the operation and activities of State enterprises.
Earlier, we reported that Uzbekistan’s total foreign debt exceeded 40 billion dollars for the first time.
According to the decision, from 1 May 2022:
- in order to regulate the attraction of external debt and its provision, state enterprises are automatically classified as «low risk», «medium risk» and «high risk» depending on their financial condition;
- the amount of external debt raised is reflected in business plan of the State-owned enterprises.
Measures focus on establishing control over the use and attraction of foreign debt from state unitary enterprises and business entities with a state share of 50% or more in the authorized capital and legal entities with a state share of 50% or more in the authorized capital.
The document states the followings:
• the upper limit of the cost of servicing the external debt (interest rates, commissions and other payments), attracted by state enterprises is determined by the Republican Commission for ensuring open and transparent public procurement (hereinafter – the Commission) quarterly;
• the consideration of the feasibility study and other documents of projects financed based on the external debt of State enterprises by the competent authorities shall be carried out after the submission of a positive conclusion to the Republican Commission or documents confirming its notification.
The resolution approved the enactment on the procedure of external debt collection by State enterprises. The enactment regulates the procedure for obtaining permission from the Republican Commission for attracting foreign loans and monitoring the operation and activities of State enterprises.
Earlier, we reported that Uzbekistan’s total foreign debt exceeded 40 billion dollars for the first time.
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