Uzbekistan's foreign debt continues to grow

Uzbekistan's debt continues to escalate. By the end of 2023, the internal and external debt of Uzbekistan had reached almost $35 billion. Even in 2024, the government continues to secure loans from foreign countries and international organizations.

Credit agreements concluded in 2024:On February 19 of this year, a loan agreement was signed between the Ministry of Economy and Finance of Uzbekistan and the Japan International Cooperation Agency. 

According to the agreement, Japan provided a preferential loan to Uzbekistan of 37 billion yen ($246.2 million). The loan was granted for 30 years with a 10-year grace period and an annual interest rate of 1.8 percent.On April 5, Uzbekistan received a loan of €150 million from the German Development Bank. On April 25, the World Bank allocated a preferential loan of $50 million to Uzbekistan.

It is stated that all three loan funds mentioned above will be directed toward the implementation of the "Sustainable Economic and Social Development Support Program" developed based on the "Uzbekistan - 2030" strategy. This includes supporting significant reforms in energy, transport, social protection, gender equality, and climate protection.
$240 million for road repair:

On December 29, 2023, the Asian Development Bank granted Uzbekistan a 25-year loan of $240 million with a 5-year grace period for the repair of internal roads. According to information, 110 km of cement-concrete roads will be built in the Republic of Karakalpakstan and the regions.

The $240 million debt will be repaid in 2048 of $303 million. The Committee of Motorways and the Agency "Avtoyolinvest" were appointed to be responsible for the timely and high-quality implementation of the project and the targeted and effective use of loans.

Foreign debt statistics of Uzbekistan:By the end of 2023, the foreign debt of Uzbekistan amounted to $29.636 billion (38.9% compared to GDP). In 2024, considering the loans involved, the debt will exceed $30 billion. China has the highest share of debt among countries ($3.7 billion).