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Binance to Assist Kyrgyzstan in Developing Blockchain Infrastructure and Crypto Assets

Kyrgyzstan’s National Investment Agency has signed a Memorandum of Cooperation with Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange by trading volume. According to the agency, Binance will assist Kyrgyzstan in several key areas, including the development of blockchain infrastructure and the creation of a national cryptocurrency reserve. The partnership will also focus on training young professionals, government employees, and specialists in blockchain technologies, virtual asset management, and cybersecurity. In addition, Binance will provide support in establishing a management system for virtual assets and blockchain technology in Kyrgyzstan source. While public interest in cryptocurrencies continues to grow in Kyrgyzstan, the market remains poorly regulated. Earlier this year, the Ministry of Economy and Commerce proposed legislation to create licensed crypto banks that would offer regulated banking services related to digital assets. The ministry stressed the need to integrate crypto assets into the national financial system, citing the rapid advancement of digital technology and the economic potential of legalizing cryptocurrency transactions. The introduction of crypto banks is expected to increase transaction volumes, boost tax revenues, and create new jobs in the fintech sector, positioning Kyrgyzstan as a regional hub for financial innovation. In a separate move to stabilize the sector, Kyrgyzstan’s Cabinet of Ministers significantly raised the minimum authorized capital required for crypto exchanges, from 100 million KGS to 10 billion KGS, a hundredfold increase. The Ministry of Economy and Commerce, which initiated the reform, stated that the measure is designed to ensure the financial stability of crypto platforms, safeguard user interests, and foster a transparent and secure virtual assets market. Existing exchanges have until January 1, 2026, to comply with the new capital requirements.

Foreign debt Uzbekistan Economy Finance

Uzbekistan’s Foreign Debt Climbs to $64.1 Billion in 2024

Uzbekistan’s total external debt rose to $64.1 billion in 2024, accounting for 55.7% of the country’s gross domestic product (GDP), according to a new report from the Central Bank on the balance of payments, international investment position, and external debt. This marks an increase from 51.9% at the end of 2023. The country’s external debt includes both public and private liabilities, though many private-sector entities, particularly in banking and industry, are partially or wholly state-owned. The government controls approximately 65% of the banking sector and holds stakes in major enterprises such as UzAuto Motors and Uzbekneftegaz. These companies, along with state-owned banks like the National Bank of Uzbekistan (NBU) and Uzpromstroybank, have collectively issued billions in debt over recent years. Corporate (or private sector) external debt rose by $6.6 billion to $30.2 billion, equivalent to 26.2% of GDP. Government debt increased by $4.2 billion, reaching $33.9 billion, or 29.5% of GDP. Since 2016, Uzbekistan’s external debt has expanded 4.4 times, from $14.7 billion to $64.1 billion. Corporate debt has nearly quadrupled during that period, while government debt has grown by a factor of 5.2. Although the growth rate of public external debt has decelerated in recent years, corporate debt, primarily borrowed by state-owned banks and companies, continues to rise sharply. According to projections from the Ministry of Economy and Finance, Uzbekistan’s public debt is expected to reach $45.1 billion by the end of 2025, representing 36.7% of projected GDP. By the end of 2024, public debt is estimated to total $39.7 billion.

Finance Eurobonds

Kyrgyzstan to Issue $1.7 Billion in Eurobonds for the First Time

The Ministry of Finance of Kyrgyzstan has summarized its 2024 financial results and outlined its plans for 2025. According to Finance Minister Almaz Baketaev, the country’s recent financial policies have played a key role in rebuilding the economy. First-Ever Eurobond Issuance For the first time, Kyrgyzstan is preparing to issue Eurobonds worth $1.7 billion with a 10-year maturity period. The bonds will be denominated in U.S. dollars, euros, Chinese yuan, UAE dirhams, Hong Kong dollars, and the Kyrgyz som. Earlier, The Times of Central Asia reported that the government was working on issuing European and American bonds, though at the time, the Ministry of Finance had not provided specific details. Now, the scale and scope of the plan have been confirmed. “This issuance will be aimed at implementing priority projects in the energy sector,” said Umutzhan Amanbayev, director of the Central Treasury at the Ministry of Finance. Investment and Economic Growth Strategy The Ministry of Finance believes that Kyrgyzstan’s stable budget surplus, improving economic indicators, infrastructure development, and large-scale reforms continue to enhance its position in global financial rankings, attracting greater attention from international investors. The Treasury has emphasized that strengthening the country’s financial and economic foundation will require: Effective budget policies Improvements in the social sector Increased foreign investment These measures, officials argue, will help sustain economic growth and ensure long-term stability. Growing Role in Financial Markets Kyrgyz authorities have begun actively engaging with international financial markets to attract investment. In 2024, the government issued green bonds to fund environmental projects. Additionally, Kyrgyzstan is working on integrating its stock exchange with those of the Eurasian Economic Union (EAEU) countries. The recent decision by S&P Global Ratings to assess Kyrgyz government securities has further bolstered interest in the country’s financial instruments, enhancing the appeal of Kyrgyzstan’s sovereign bonds.

Infrastructure Projects Finance EBRD Banking Water Management

Securing Central Asia’s Future: EBRD’s Regional Head on the Fight for Water Sustainability

Every fourth inhabitant of Central Asia, home to more than 83 million people, does not have regular access to safe drinking water. The region spans more than four million square kilometers, and over 15% of its territory is covered by the Karakum and Kyzylkum deserts, as well as waterless places such as the Ustyurt Plateau (similar in size to the United Kingdom), which stretches across Kazakhstan, Uzbekistan, and Turkmenistan. The extreme heat common to Central Asia in summer makes water a precious resource. To make matters worse, irresponsible human activity, particularly wasteful water use for irrigation, has led to one of the most devastating ecological catastrophes globally. The Aral Sea, where up to 60,000 tonnes of fish were caught annually only 30 years ago, has practically ceased to exist. Most of Central Asia’s freshwater intake relies on glacial melts affected by global warming. The World Resources Institute forecast in its 2023 Aqueduct Water Risk Atlas that an additional one billion people globally will live with extremely high water stress by 2050. This will disrupt economies and agricultural production. Most Central Asian countries will be severely affected. While the European Bank for Reconstruction and Development (EBRD) cannot reverse the global warming process or tackle its impacts alone, it can certainly contribute to climate change mitigation efforts, securing better water access, and promoting its rational use. There is frequently no water supply or water treatment infrastructure in rural areas of the regions where it invests. Most municipal water supply and treatment utilities across Central Asia have not seen much investment or refurbishment over the last 30 years. The EBRD has been working to address this issue, and many of its investment projects are already impacting people’s lives. [caption id="attachment_29070" align="aligncenter" width="1600"] Image: EBRD[/caption] In Kazakhstan, the Bank’s work with Vodnye Resoursy Marketing (VRM)/Shymkent water company, the country’s only privately owned municipal water utility, perfectly illustrates why the EBRD is such a strong advocate of private-sector involvement in the provision of municipal services. Over many years, we have enjoyed excellent cooperation with this company, which has translated into high-quality water supply services for more than 1.2 million residents of Shymkent. It has become a benchmark for the region for its effective and efficient operations. Thanks to VRM’s efforts, with 1.2 million residents, Shymkent became the first city in Kazakhstan to install a water meter for every consumer. User habits have changed: personal daily water consumption has decreased from 456 liters 27 years ago to 150 liters. The water savings achieved during this period will enable Shymkent to meet the needs of its population for another 20 years. The EBRD started working with VRM in 2009 and has financed five projects totaling €60 million. With the Bank’s financial assistance, VRM has introduced an automated network monitoring system, improved power supply at twelve pumping stations, constructed eleven electrical substations, and built a European Union standards-compliant biogas facility (the only one of its kind in Central Asia), which helps VRM to meet all of its thermal...

Finance Sport olimpic games State Budget

Uzbekistan Doubles Sports Budget to $230 Million, Launches Presidential Olympics

Uzbekistan has announced the launch of the Presidential Olympics, a new national sports competition, following a recent video conference meeting chaired by President Shavkat Mirziyoyev. Competitions in Olympic sports, titled "Olympic Peaks of New Uzbekistan," will be held twice a year across the country. Winners at the district and regional levels will receive awards from local authorities, while regional champions will advance to the Presidential Olympics, which will take place annually at the Olympic Village from December 10-20. Top athletes will be awarded valuable prizes, including houses and cars. Additionally, first and second-place winners will gain admission to the Republican Olympic and Paralympic Center, where they will receive scholarships for their first two years of study. The initiative aims to enhance Uzbekistan’s international sports standing and help the country secure a top-ten finish at the Los Angeles 2028 Olympic Games. During the meeting, it was noted that Uzbekistan’s sports budget has doubled over the past four years, rising from UZS 1.5 trillion ($115.38 million) to UZS 3 trillion ($230.77 million). Additionally, coaches’ salaries have doubled; significant investments have been made in sports infrastructure; 101 new sports facilities have been built; and 67 existing facilities have been reconstructed. To further support athletes preparing for international competitions, including the Olympics, an additional UZS 300 billion ($23 million) will be allocated. President Mirziyoyev commented, “Sport is, first of all, an ambassador of peace, a source of national pride for every country.”

Finance Russia Currency Russian Influence National Bank Foreign trade turnover

Tajikistan Nears Full Transition to Ruble in Trade with Russia, As Bilateral Trade Surges

Tajikistan has nearly completed its transition to ruble payments in trade with Russia, with over 90% of transactions now conducted in Russian currency, according to Firdavs Tolibzoda, head of the National Bank of Tajikistan. This marks a significant shift from 2021, when trade between the two countries was evenly split between the ruble and the U.S. dollar. Tolibzoda highlighted that Tajik banks are working to minimize financial risks by primarily cooperating with Russian banks that are not subject to international sanctions. The shift away from the dollar in Tajik-Russian trade began after Western sanctions were imposed on Russia following its invasion of Ukraine. Over the past three years, Tajik exchange offices have no longer faced periodic shortages of U.S. currency, a problem that was common before the transition to ruble payments. In 2024, bilateral trade between Tajikistan and Russia is expected to reach $1.98 billion, reflecting a 15.6% increase from 2023. However, trade remains highly imbalanced. Russian imports account for 95.2% of total trade, with Tajikistan purchasing oil products and essential goods, while Tajikistan’s exports to Russia amounted to just $96 million, primarily consisting of vegetables, fruits, and mineral products such as ores and concentrates. Despite Russia’s dominant role as Tajikistan’s largest trading partner, China is rapidly catching up. In 2024, Russia accounted for 22.1% of Tajikistan’s total foreign trade turnover, while China’s share reached 21.8%. Trade with China grew by 30.1% over the past year, almost double the growth rate of trade with Russia, indicating a shifting dynamic in Tajikistan’s economic partnerships.