Important!  Uzbekistan has set the limit of the state debt

A law "On State Debt" was signed by President Shavkat Mirziyoyev which stipulates that in Uzbekistan, the state debt should not be more than 60% of the gross domestic product.  

This law established the powers of state bodies in the field of public debt management.  Accordingly, the Ministry of Economy and Finance is the competent body in the field of public debt management.

According to the law, public debt management consists of:

•    Development of public debt management strategy;
•    Attraction of funds by the state;
•    Management of funds raised by the state;
•    Public debt risk management;
•    Restructuring (changing the structure) of the state debt;
•    Re-crediting of funds raised by the state;
•    Formalization and presentation of a state guarantee;
•    Keeping the list of state debt contracts and state guarantees;
•    Accounting and reporting of the state debt;
•    Ensuring the servicing of the state debt and fulfilling state guarantees.

Furthermore, the government debt management strategy has been approved by the Cabinet of Ministers together with the fiscal strategy for a period of 3 years.

Public debt includes internal and external debt and can be short-term (up to 1 year), medium-term (from 1 to 5 years), long-term (for a period of 5 years or more).

 It is determined that the maximum amount of the state debt should not exceed 60 percent of the annual forecast indicator of the gross domestic product.

 This law will come into force 3 months after its official announcement.

 It is worth recalling that the state debt of Uzbekistan in 2022 reached a record level – 29.2 billion dollars.  In the fourth quarter of last year, the state debt reached 36.4% of GDP.