Loans & Grants - The Times Of Central Asia

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Finance Economy Foreign debt Government Loans & Grants State Budget

Uzbekistan’s Debt to Russia Climbs Amid Rising Regional Loans

Russia’s foreign lending surged to over $30 billion in 2023, the highest level since 1999, with Egypt, Bangladesh, and India receiving the largest new loans. Uzbekistan also saw a notable rise in its debt to Russia during the year. Uzbekistan’s debt to Russia increased by $41.3 million in 2023, contributing to the overall growth in the country’s financial obligations to foreign lenders. Russia’s Top Debtors Belarus remains Russia’s largest debtor, with $7.75 billion in loans, accounting for 25% of Russia’s total foreign lending. Bangladesh follows with $6.6 billion (22%), and India ranks third with $4.1 billion (14%). Other significant borrowers include Egypt, which owes $3.3 billion (11%), and Vietnam at $1.4 billion (5%). Egypt experienced the largest debt increase in 2023, with an additional $1.45 billion borrowed from Russia. Bangladesh and India saw increases of $745 million and $363 million, respectively. Afghanistan’s debt to Russia grew by $19.9 million, while smaller increments were recorded in countries like Zambia, Yemen, Sri Lanka, Ecuador, Sudan, and Moldova, which collectively added $26.54 million in debt. Uzbekistan’s Broader Debt Outlook As previously reported by The Times of Central Asia, Uzbekistan’s public debt is projected to reach $45.1 billion by the end of 2025, equivalent to 36.7% of the country’s GDP. By the end of 2023, public debt is expected to stand at $39.7 billion. The Uzbek government’s budget for 2025 highlights significant fiscal commitments, with 52% - amounting to $27.02 billion - allocated to social programs, reflecting the government’s emphasis on social spending.

EBRD Loans & Grants Water Access Infrastructure Development Water Management

EBRD Supports Water Infrastructure Upgrades in Northern Kyrgyzstan

The European Bank for Reconstruction and Development (EBRD) has announced a financial package of up to €17 million to upgrade water infrastructure in three cities in northern Kyrgyzstan. The funding includes a loan of up to €7.6 million and a matching grant. The funds will be used to modernize water supply networks, upgrade pumping stations, install water meters in Kemin and Shopokov, and restore wastewater treatment and sewerage systems in Talas. In addition to the financial package, the projects will receive a technical cooperation grant of up to €1.8 million. This grant will support the implementation process and the corporate development of municipal utilities in the three cities. Hüseyin Özhan, EBRD Managing Director for Central Asia, highlighted the Bank's role as a key lender to Kyrgyzstan’s water sector. “We have supported 31 water projects for the amount of more than €190 million in 26 cities across the Kyrgyz Republic to date. They are helping households and businesses to have regular access to high-quality water and wastewater services,” Özhan stated. Since beginning its operations in Kyrgyzstan in 1992, the EBRD has invested approximately €998 million across 250 projects. These initiatives primarily focus on sustainable infrastructure and private sector development, significantly improving living conditions and economic opportunities in the region.

Energy Infrastructure HPP Hydropower Loans & Grants Electricity supply

Kyrgyzstan’s Largest Hydropower Plant Boosts Generating Capacity

On November 19, Kyrgyzstan launched the modernized hydroelectric generating unit No. 1 at the Toktogul Hydroelectric Power Plant (HPP), the country’s largest power facility. Located on the Naryn River, the Toktogul HPP generates approximately 40% of Kyrgyzstan’s electricity. The modernization of hydroelectric unit No. 1 began in March 2024 and has increased its generating capacity by 60 MW. Prior to this upgrade, the Toktogul HPP had a total capacity of 1,200 MW, with each of its four units producing 300 MW. Two units had already been upgraded in previous phases, collectively adding 120 MW to the plant's total capacity. The reconstruction of the fourth and final hydroelectric unit is scheduled for 2025. Once the modernization project is complete, Toktogul HPP will gain an additional 240 MW of generating capacity, extending its service life by 25–30 years. The $210 million rehabilitation project is funded by a $110 million loan from the Asian Development Bank (ADB) and $100 million from the Eurasian Fund for Stabilization and Development (EFSD). With a total volume of 19.5 billion cubic meters, the Toktogul HPP reservoir plays a dual role in meeting Kyrgyzstan's energy demands and providing essential irrigation water to Kazakhstan and Uzbekistan. During the winter, increased water releases are used to generate electricity for Kyrgyzstan, while summer releases support irrigation for southern Kazakhstan’s dry regions. As of November 19, 2024, the Toktogul reservoir contained 12.991 billion cubic meters of water, compared to 11.694 billion cubic meters on the same date in 2023. The reservoir currently receives 246 cubic meters of water per second and releases 488 cubic meters per second. Despite this year’s higher water levels, Kyrgyzstan continues to face electricity shortages, according to Energy Minister Taalaibek Ibrayev. Toktogul HPP's modernization and efficient management of water resources remain critical to addressing these challenges and ensuring regional energy and water security.

Loans & Grants Climate Change International Cooperation Reforestation COP29

Bishkek Secures Multi-Million Dollar Grants at COP29 Conference in Baku

Boobek Azhikeev, the head of Kyrgyzstan’s Ministry of Emergency Situations, held several meetings with representatives of international institutions during the COP29 conference in Baku. Protocols and memorandums were signed, and a joint action plan for 2025-27 was developed. “I would like to highlight our meeting with the regional director of the Green Climate Fund, where we discussed a $25 million grant,” stated Kyrgyz EMERCOM spokeswoman Elnura Muktarova. “These funds are intended to support Kyrgyzstan’s Hydrometeorological and Forestry Services, as well as the Training and Research Center of the Ministry of Emergency Situations. We anticipate beginning these projects next year.” Azhikeev also negotiated with FETNet, a Finnish company that will provide advanced training for the Hydrometeorological Service. FETNet has offered to train Kyrgyz specialists in Finland and will present cutting-edge technologies to improve the accuracy and timeliness of weather forecasts. In addition, the Ministry of Emergency Situations announced that it had reached an agreement with the Asian Development Bank (ADB) to secure $60 million for strengthening the banks of the Kara-Darya, Chu, and Yassy rivers. This funding aims to reduce flood risks and enhance the ecological situation in the region. Of the total, 40% will be provided as a grant, while the remainder will be offered as a loan. During a meeting with representatives from the Financial Service under the Government of South Korea, discussions centered on financing Kyrgyzstan’s Forest Service. The South Korean representatives pledged support in the form of laboratory equipment, high-quality seeds, and digital mapping tools to combat pasture degradation and enhance forestry management. Kyrgyz Ministry of Emergency Situations officials also met with Turkish EMERCOM representatives and the Turkish Cooperation and Coordination Agency (TIKA) to discuss joint efforts in responding to emergency situations.

International Finance Loans & Grants ADB Green economy Finance

Tajikistan and ADB Sign Grant for Green Corridor Initiative

On November 1, Tajikistan's Ministry of Finance signed a grant agreement worth $86.6 million with the Asian Development Bank (ADB) for a “Green Corridor Demonstration Project”. This project aims to reconstruct 49 kilometers of Tajikistan's Dangara-Gulistan highway, expand it to four lanes with a "Green Road" element, add 48.8 kilometers of bicycle lanes, and build two charging roads. The AIIB has approved a $75.5 million loan for Tajikistan to build a 920-meter bridge, connecting 350,000 people in the northeast to Dushanbe and regional towns and the border of Kyrgyzstan.

Financial Market Finance Economy Loans & Grants Government

Kyrgyzstan Prepares for First Placement of European and American Bonds

According to Bloomberg, the Ministry of Finance of Kyrgyzstan is working on the first placement of European and American bonds in the country's history. Arzubek Jumaev, head of the Kyrgyz Finance Ministry's Public Debt Department, confirmed to the publication that the agency is currently negotiating with investors for a possible first sale of euro and U.S. bonds as early as 2025. “The size of the issue and investment banks will be determined later,” Zhumayev said. It is also reported that the Finance Ministry expects an improvement in its credit rating from Moody's to attract investors. Kyrgyzstan's credit rating is at B3, six indicators below the required investment grade. Earlier, Moody's rating agency changed Kyrgyzstan's credit rating from negative to stable, which, according to the Kyrgyz Ministry of Economy and Commerce, indicates the country's balance of risks and positive dynamics in its financial and economic issues. In addition, in September this year, the authorities signed an agreement with other Western rating agencies, Standard and Poor's and Fitch, to collaborate on assessing credit risks and improving Kyrgyzstan's investment attractiveness. It should be noted that the Ministry of Finance of Kyrgyzstan places government securities guaranteed by the state. These are state treasury bills and state treasury bonds. The securities issues are placed monthly on the Kyrgyz Stock Exchange. In 2024, Kyrgyzstan's domestic debt increased by $232 million, which indicates good demand for government securities. Loans on government securities currently amount to $1.8 billion.