Government raises foreign and domestic borrowing limits for 2024

The revised borrowing limit was announced amid projections of rising external debt. Uzbekistan's public debt, which stood at $11.6 billion in 2017, is expected to surge to $39.7 billion by the end of 2024, reflecting a 3.4-fold increase. Forecasts suggest that public debt could surpass $55.9 billion by the end of 2027, representing an additional growth of over 40% in three years.

Bakirov pointed out that while the increase in the foreign debt ceiling may be tied to higher costs for projects financed through external borrowing, government representatives in Parliament have yet to provide a detailed explanation for the adjustment.

Initially, the 2024 borrowing limit was set at $5 billion, evenly split between the state budget and investment projects. The increase reflects a broader trend of rising public expenditure; earlier reports indicated that Parliament approved nearly a 10 trillion-UZS hike in government agency spending.

In addition to the foreign debt ceiling, the domestic borrowing limit has also been raised, from 25 trillion UZS to 30 trillion UZS, further emphasizing Uzbekistan’s reliance on both internal and external funding to support its economic plans.

The growing debt has sparked concerns about its long-term sustainability, with experts urging transparency and effective allocation of borrowed funds to ensure economic stability and growth.