Uzbekistan Breaks Regional Record In Public Debt Market

Uzbekistan’s Ministry of Economy and Finance placed bonds worth 12.2 trillion soums, or one billion dollars, on international markets, setting the largest such issue in Central and Eastern Europe, the Middle East, and Africa over the past 15 years, Orda.kz reports.

The yield on the bonds was 12.25%, lower than on similar issues in Uzbekistan in recent years and 1.75 percentage points below the Central Bank’s base rate of 14% per annum.

Two years ago, Uzbekistan placed public debt at 16.625%, and a year ago at 15.5%. The new rate was also 0.14 percentage points lower than on the domestic market. According to the authorities, 50 foreign investors took part in the placement. It was not specified on which platform the placement took place.

Investor demand exceeded the initial offer of six trillion soums by four times, which is why the Ministry of Finance doubled the original volume.

The government plans to use the raised funds to finance the budget deficit. Under the budget law for the current year, it is set at 60.1 trillion soums, or 3% of GDP.

Original author: Alexey Afonsky

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