TASHKENT

Uzbekistan’s current account deficit stood at $3.3 billion in the first half 2021, increasing by $1.4 billion compared to the same period of 2020, the Central Asian country’s central bank said.

Despite a significant increase in the volume of export of goods (except gold exports) and cross-border remittances compared with the same period last year, higher volumes of imports resulted in an increased deficit of the current account balance of the country, the bank said in a review.

“At the same time, the negative balance at $5.8 billion of the trade balance, including goods and services, was partially offset by the positive balance of the primary and secondary income of $2.5 billion, the bank said.

For the first half of 2021, the country’s assets in foreign currency increased to $66.1 billion, and the volume of external liabilities amounted to $48.3 billion.

Uzbekistan’s net international investment position amounted to $17.8 billion as of July 1 of this year, showing a 12 percent or $2.4 billion decrease.

The Central Asian nation’s total foreign debt has increased by $2 billion between January-July this year and amounted to $35.9 billion, of which $22 billion was a state debt, and $13.9 billion – an external debt with no state guarantee, the report said.

The central bank explained the growth in external public debt by the addition of new external borrowings and payments, as well as by a decrease in the prices of bonds placed on international financial markets and changes in rates.

In July, Uzbekistan placed  dual-tranche sovereign Eurobonds worth $870 million denominated both in U.S. dollars and Uzbek soums on the London Stock Exchange.

Initially, the organisers targeted between 4.25-4.375 percent for the U.S.-denominated tranche and about 14.5 percent for the soum-denominated tranche, but during the orders it was cut. Eurobonds worth $635 million had a 3.9 yield and 10-year maturity, while Eurobonds worth $235 million denominated in soums had a yield of 14 percent with a maturity of three years.

Uzbekistan’s foreign trade turnover for the first half of 2021 amounted to $16.6 billion, Exports amounted to $5.9 billion, while imports amounted to $10.7 billion import.