UZ Daily
Government securities for 174.5 billion soums with a circulation period of 5 years were issued at an electronic auction at the Republican Currency Exchange of Uzbekistan (UzRCE) and for the first time government securities with a total volume of 10 billion soums with a circulation period of 10 years.
The weighted average interest coupon payment on these government securities amounted to 14.5% and 15% per annum, respectively, setting a target for a 10-year period.
The issue of medium-term and long-term government securities serves as a benchmark for raising funds through the issuance of low-risk instruments in the national currency, creates the basis for diversifying financial instruments and attracting new participants in the financial market (non-residents, individuals, insurance companies, etc.)
It should be noted that in order to diversify the public debt portfolio and reduce currency risks, the Ministry of Finance is increasing the volume of issuance of government securities and taking systematic measures to develop domestic financial markets.
As part of the cooperation between the Treasury and the US Treasury to develop the government securities market, US Treasury consultants provide technical support to the Treasury.
Also, in order to reduce currency risks in the public debt portfolio, sovereign international bonds were issued for the first time in November 2020 in the amount of 2 trillion soums and in July 2021 in the amount of 2.5 trillion soums.
The Ministry of Finance will continue to issue government securities, taking into account the current situation in the financial markets and demand, based on the goals of effective management of domestic public debt and the development of local financial markets.
