Uzbekistan's External Debt Reaches $88 Billion as Borrowing Costs and Corporate Loans Grow

Debt rises faster than the regional average

Uzbekistan's external debt reached $88.03 billion at the end of 2025, up 24.7% in a year, according to figures attributed to the World Bank's International Debt Report 2026. The total includes $48.46 billion in public and publicly guaranteed obligations, alongside substantial borrowing by companies without government guarantees.

The increase was faster than the 15.3% rise across Europe and Central Asia and the 5.5% increase among low and middle income economies. Uzbekistan's rate exceeded those benchmarks by 9.4 and 19.2 percentage points, respectively.

Two developments sit alongside that rapid growth. The debt stock became larger relative to national income and exports, while annual repayments became smaller relative to those same measures. Borrowing from private creditors also carried an average interest rate of 8.6%, compared with 3.4% from foreign governments and international organisations.

For Uzbekistan, the practical issue is how much financing comes due, when it must be repaid and what the borrowed money helps produce. The figures show a country drawing on several sources of foreign funding, with very different repayment terms.

How the debt reached $88 billion

Uzbekistan owed foreign creditors $13.57 billion in 2015. By the end of 2025, that amount had grown about 6.5 times, an increase of $74.46 billion over the decade.

External debt means money owed by residents, including the government, banks and companies, to creditors outside the country. It covers more than government borrowing and can include obligations denominated in the national currency when the lender is abroad.

The main dates help put the latest figure in context:

• 2015: External debt stood at $13.57 billion.
• End of 2025: The figures attributed to the World Bank put external debt at $88.03 billion, following annual growth of 24.7%.
• July 1, 2026: The Central Bank's external sector review put external debt at $84.1 billion.
• 2028: The soum bonds cited with a yield of 15.5% are scheduled to mature.

The Central Bank figures discussed in October's coverage of rising corporate borrowing used $82.2 billion as the balance at the beginning of 2026, compared with the $88.03 billion attributed here to the World Bank for the end of 2025. The reason for that $5.83 billion gap has not been explained, so a consistent comparison with the July 2026 figure requires clarification of the underlying coverage and calculations.

Who is responsible for repayment?

Public debt and obligations guaranteed by the government account for $48.46 billion, or about 55% of the $88.03 billion total. A government guarantee means the state promises to repay a lender if the original borrower fails to do so.

Another $32.84 billion consists of external borrowing by private companies without government guarantees. That represents about 37.3% of total external debt. Repayment responsibility rests with those borrowers under their loan agreements, rather than through an explicit state guarantee.

Short term debt accounts for the remaining $6.73 billion, or about 7.6%. Such borrowing generally falls due within a year, making the timing of repayments and access to replacement financing especially relevant.

Public and publicly guaranteed debt is therefore the largest component, but borrowing outside that category is also substantial. Companies can use foreign loans to finance investment and operations, while the government's direct exposure depends on whether it borrowed the money itself or guaranteed another borrower's obligations.

International institutions are the largest public creditors

International financial institutions hold $22.82 billion of Uzbekistan's public and publicly guaranteed external debt. That is about 47.1% of the $48.46 billion category, making these institutions its largest creditor group.

The Asian Development Bank accounts for $8.36 billion, while the International Development Association, part of the World Bank Group, accounts for $5.01 billion. Other multilateral creditors hold $9.45 billion. Multilateral lenders are institutions backed by several countries, rather than a single national government.

Foreign governments hold another $10.53 billion, equivalent to about 21.7% of public and publicly guaranteed external debt. China is the largest bilateral creditor at $3.85 billion, followed by Japan at $2.99 billion. Other countries together account for about $3.7 billion.

China and Japan consequently hold about 65% of Uzbekistan's debt to foreign governments, calculated from their combined $6.84 billion. Across all public and publicly guaranteed external debt, however, international institutions remain the larger source of financing.

Private creditors hold $15.11 billion, or approximately 31.2% of public and publicly guaranteed external debt. Here, "private" describes the lender, such as a commercial investor, rather than the borrower. A government bond bought by an investment fund belongs in this category even though the government owes the money.

Bond sales bring financing at a higher price

Uzbekistan issued $3.9 billion in international bonds in 2025, the largest amount among countries eligible for concessional financing from the International Development Association. Concessional financing means lending on more favourable terms, such as lower interest rates or longer repayment periods.

Bonds allow a government or company to borrow from investors by selling securities that promise payments under agreed terms. They give borrowers another route to funding beyond loans from development institutions and foreign governments.

The reported breakdown assigns $1.6 billion in issuance to the government, including bonds denominated in soum, and $2.4 billion to other public sector entities. Those component figures total $4 billion, against stated issuance of $3.9 billion.

The World Bank figures also point to the price of market financing. Soum bonds maturing in 2028 carried a yield of 15.5%, while dollar bonds were issued at a yield of 7.38%. Yield expresses the return investors receive in relation to a bond's price and promised payments.

The report's authors attribute part of the higher soum yield to inflation risks. Investors receiving payments in soum face the possibility that rising prices will reduce what those payments can buy. Dollar borrowing brings a different concern for a borrower earning revenue in soum: more local currency may be needed to repay the same dollar amount if the soum weakens.

Official loans offer lower rates and more time

Foreign governments and international organisations provided loans to Uzbekistan in 2025 at an average interest rate of 3.4%, with an average maturity of 21 years and a grace period of five years. Maturity is the time until the loan must be fully repaid.

Private creditors provided financing at an average rate of 8.6% over 10 years. Their average rate was 5.2 percentage points higher, or about two and a half times the official creditor rate, while the repayment period was less than half as long.

The private financing figures describe a grace period extending through the loan term. A grace period generally postpones principal repayments, meaning repayment of the amount originally borrowed. Interest can still fall due during that period, and principal may be concentrated at maturity.

Uzbekistan's financing choices therefore affect both annual costs and future payment dates. Longer loans spread principal repayments over more time. Borrowing that leaves principal until the end creates a larger payment when the loan matures, which the borrower must meet from its own funds or new financing.

A larger debt stock, but lower repayment ratios

Uzbekistan's external debt reached 60% of gross national income and 227% of annual export earnings in 2025. Both ratios increased from the previous year. Gross national income measures income earned by a country's residents, including net income from abroad.

The export ratio means the outstanding debt was equivalent to 2.27 times a year's export earnings. Export revenue matters because it brings foreign currency into the economy, helping businesses and the country meet obligations to overseas creditors.

Debt service, the principal and interest actually paid during the year, followed a different pattern. Payments amounted to 29% of export earnings and 8% of gross national income in 2025. Those ratios fell by 18.6% and 17.7%, respectively, compared with 2024.

A debt stock is the amount still owed at a particular date; debt service is the amount paid over a period. A country can finish a year owing more while spending a smaller share of its income on repayments because payment schedules, income and export earnings change.

Across Europe and Central Asia, debt service amounted to 25% of export earnings and 8% of gross national income. Uzbekistan's export ratio was four percentage points higher, while its income ratio matched the regional figure. The World Bank identified the region's debt service to income ratio as the highest among regions comprising low and middle income economies.

Growth and electricity investment add context

Uzbekistan's expanding economy provides part of the setting for its borrowing. The World Bank's October update, covered in the higher growth forecast, put economic growth in 2025 at 7.7% and projected 7.9% for 2026. Private consumption rose 9.5% in real terms in 2025, while investment increased 10.5%.

Foreign sources, including direct investment and loans, financed more than 70% of total investment, according to that regional assessment. Direct investment brings ownership capital, while loans create repayment obligations. Both can support new capacity, but they place different demands on future income.

A later example of borrowing for infrastructure is the electricity grid financing approved in 2026. The $371 million programme combines a $100 million World Bank loan, a $200 million Asian Development Bank loan and $71 million from Uzbekistan's budget to modernise and digitise 60 major electricity substations.

The programme targets lower power losses and outages and a network able to accommodate at least 3.3 gigawatts of renewable energy capacity. By 2031, annual electricity losses at the upgraded substations are expected to fall by 20,000 megawatt hours. For homes and businesses, the intended benefit is more reliable electricity; for the borrower, the loans carry repayment obligations alongside those expected gains.

Key Points

• Uzbekistan's external debt reached $88.03 billion at the end of 2025, up 24.7%, according to figures attributed to the World Bank.
• Public and publicly guaranteed obligations accounted for $48.46 billion; private company borrowing without state guarantees totalled $32.84 billion.
• International financial institutions held $22.82 billion of public and publicly guaranteed external debt, the largest creditor share.
• Official loans averaged 3.4% interest over 21 years, compared with 8.6% over 10 years from private creditors.
• Debt reached 227% of export earnings, while annual debt service fell to 29% of export earnings.
• The $88.03 billion balance needs reconciliation with the $82.2 billion starting figure used in the Central Bank comparison for 2026.