Uzbekistan’s external debt situation is stable and balanced, the Governor of the Central Bank stated, Timur Ishmetov stated at a press conference on Friday.
"The rules and legal framework for attracting external debt in our country have been set up several years ago, and the level of external debt today is quite stable and balanced," he said.
According to Ishmetov, when evaluating the debt burden, it is important to look not at absolute figures, but at the ratio of debt to the size of the economy (GDP).
"In 2020, the state external debt topped $21.4 billion, which was about 32% of GDP. In the end of 2025, it is projected at $39 billion, but the ratio to GDP is about 29%. That is, in absolute terms, the debt has increased, but the economy is growing faster, so the relative figure is decreasing," he highlighted.
He clarified that over the past five years, the ratio of public debt to GDP had decreased from 32% to less than 29%, which, according to him, points to the absence of risks of destabilizing debt sustainability.
Timur Ishmetov added that attracting new borrowings is directly related to the budget deficit.
"We borrow only if budget revenues are less than expenditures. Therefore, for us, the level of the budget deficit is one of the key macroeconomic indicators," the Governor of the Central Bank explained.
According to him, in 2025, the consolidated budget deficit is projected at below 3% to GDP, and this will allow "maintaining stability in external debt and preventing its growth."
"Borrowing to support the budget is a normal practice, due to the budget deficit, which we keep within 3% of GDP. Adhering to this limit prevents any problems with external debt," concluded Timur Ishmetov. He stressed the increase in borrowing by private companies, which are actively expanding their investment activities.
“Some companies are taking direct loans, others are issuing Eurobonds, which can be considered a positive indicator. Moreover, it's not only borrowing that's increasing – direct foreign investment has also increased. Over the first nine months, its volume grew by 55% compared to the same period last year, which is a very good result,” he said.
