Prospects for Applying Foreign Experience in Factoring, Forfeiting and Futures Contracts to Minimize Financial Risks on Debt Instruments in Uzbekistan (Central Asian Journal of Innovations on Tourism Management and Finance)

Summary

• The issuance of government securities in Uzbekistan doubled from 21.3 trillion UZS to 42.2 trillion UZS between 2023 and 2025.p.1
• Uzbekistan's debt market-to-GDP ratio increased from 3% in 2022 to 6-7% by 2025.p.1
• Yields on long-term government bonds in Uzbekistan remain between 16.5–18.5%, pricing in maturity and inflation risks.p.2
• Factoring service volume in Uzbekistan reached 9.5 trillion UZS in 2025, accounting for 0.51% of GDP.p.2
• Commercial banks accounted for 93% of factoring operations in 2025, with 46% conducted via digital platforms.p.2
• Factoring penetration relative to GDP grew from 0.10% in 2024 to 0.51% in 2025, well below the 8-12% seen in European countries.p.2

Key insights

1. Quantitative growth in Uzbekistan's debt market has not been accompanied by proportional development of risk management instruments.p.1
2. Derivatives on debt instruments, including futures contracts, remain virtually absent in Uzbekistan, dampening foreign investor interest.p.1
3. High bond yields of 16.5–18.5% render simple buy-and-hold strategies insufficient, necessitating active risk transfer mechanisms.p.2
4. Forfeiting is almost never used in Uzbekistan, leaving its capacity to finance long-term export contracts unfulfilled.p.2
5. In 2026, Uzbekistan approved procedures for local entrepreneurs to trade futures contracts on international commodity exchanges.p.2
6. Developing a local financial futures market requires forming a central counterparty, an initial margin system, and guarantee funds.p.4
7. Introducing agency factoring on the Uzbek Commodity Exchange could allow raw material purchases with deferred payments up to 90 days.p.5