On November 9-12 of this year, a regular meeting of the Asian Regional Forum was held in the format of a videoconference, dedicated to the discussion of issues on the management of public debt and foreign exchange reserves in the context of the coronavirus pandemic, with the participation of experts from the International Monetary Fund, the Asian Development Bank, the Organization for Economic Cooperation and Development, and international rating agencies, as well as ministries of finance and central banks of the Philippines, Indonesia, Georgia, Thailand, Uzbekistan and other countries in the region.

A representative of the Ministry of Finance of the Republic of Uzbekistan also took part in the work of the Forum and acquainted the participants with the fiscal measures taken to maintain macroeconomic stability, increase the efficiency and transparency of public finances, as well as a prudential approach to public debt management.

In particular, despite the moderate level of public debt in the republic, mechanisms for legislative restrictions on external government borrowing have been introduced into practice, measures are being taken to diversify the debt portfolio and develop the domestic government bond market, requirements for information disclosure have been increased, and debt sustainability analyzes are systematically carried out jointly with the IMF.

The dynamics of growth of the domestic government bonds market and further plans for its development, including the opportunities for participation of foreign investors, aroused particular interest from experts.

Experts noted that in the context of the ongoing coronavirus pandemic, ministries of finance are faced with new challenges associated with the need to further expand borrowing programs, increase fiscal and operational risks in fulfilling states' obligations.

In particular, the growth of volatility in the global financial markets due to persisting heightened uncertainties leads to limited access to financial resources for developing countries in the capital markets.

In addition, the introduced temporary restrictions (quarantine) complicate the timely implementation of payments for servicing the public debt, as well as the fulfillment of tasks to promptly attract borrowed resources to fully finance the expanding fiscal anti-crisis measures.

Source: Ministry of Finance of the Republic of Uzbekistan