FORMATION OF AN EFFECTIVE DEBT MARKET: INSTITUTIONAL CHALLENGES AND DEVELOPMENT PROSPECTS OF GOVERNMENT BONDS IN UZBEKISTAN

Abstract

This article presents a comprehensive analysis of the state and structure of the government securities market in the Republic of Uzbekistan during the period 2018–2024, focusing on demand and placement trends. Government bonds are considered a key element of the financial system and play an important role in mobilizing both domestic and foreign investment resources. Particular attention is given to identifying institutional and structural constraints hindering the full development of this financial market segment. These include the limited range of available debt instruments, low liquidity in the secondary market, a predominance of short-term bonds, and the absence of flexible instruments such as floating-rate bonds. The study argues that the establishment of a fully functional, multi-level infrastructure for the circulation of government bonds requires the introduction of innovative instruments, including indexed, "green," and social bonds, which could enhance the sustainability of budget financing and strengthen the investment climate. It concludes that the development of the government bond market is of strategic importance for ensuring budgetary stability and increasing the transparency of public debt policy.