Snapshot of Sovereign Financing in Eurasia （Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, and Uzbekistan) in 2023

Mr Artem Levenkov
Head of Socioeconomic Analysis and IFIs
Eurasian Fund for Stabilization and Development

To improve the conditions for long-term sustainable and inclusive growth, structural and institutional transformations are needed, covering not only stabilisation but also infrastructure and social development objectives. To address this set of challenges, countries receive substantial support from IFIs in the form of concessional loans and grants.

To monitor IFIs financing in the region, the EFSD compiled a comprehensive regional database (SFD) of sovereign financing, including investment loans, stabilisation loans, grants, and TA projects. SFD contains information on operations financed by 36 different donors from 2008 through 2023 in 11 countries: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Russia, Tajikistan, Turkmenistan, and Uzbekistan.

More information on the SFD methodology is available here.

In 2023, the total amount of approved financing from IFIs, development agencies, and climate funds was USD 6.2 billion (337 operations), down by 25% compared to 2022 (USD 8.2 billion). The decrease in the volume of approved financing was driven by a USD 1.8 billion drop in investment financing. The share of IFIs in financing is prevalent at USD 5.6 billion, or 90.3% of the total.
269 projects were at the active implementation stage and 68 projects were completed. IFIs provided financing mainly in dollars (USD 5.6 billion), as well as in euros (EUR 473.3 million) and Swiss francs (CHF 4 million).

ADB and the WB are the leaders in terms of approved sovereign financing in the region with a combined share of 59.7% (Figure 1).

Figure 1. IFIs approved financing

In 2023, Uzbekistan ranked first among 11 Eurasian countries in terms of approved financing, which amounted to USD 3.2 billion. This is 51.6% of the total approved financing in Eurasia (Figure 2).

Figure 2. Approved Financing in Eurasia, by Country, 2023, USD billions

The largest number of operations were in the area of economic policy, finance, and banking sector. They accounted for 28.4% of the total number of operations, or USD 1.7 billion, the bulk of which was stabilisation financing (Figure 3).

Figure 3. Volume of Sovereign Financing, by Sector, USD millions

The largest project in Kyrgyz Republic approved for financing in the transport sector was the Issyk-Kul Ring Road Improvement Project. The EBRD provided a loan in the amount of EUR 44.2 million. The Project will close the remaining infrastructure gap on the 4 40 km long Issyk-Kul ring road. It is part of CAREC 1 corridor and is one of six priority transport links in the national Road Sector Development Strategy 2025.

The inefficient school environment for teaching and learning is a major problem in Tajikistan. To address these challenges, the WB has approved a USD 50 million grant aimed at systemic changes to improve teaching and learning outcomes, upgrade schools, and expand opportunities for student assessment.

MDBs are the key donors in the region in terms of the volume of financing. They approved 91.2%, or USD 5.6 billion, of total financing. The remaining financing came from development agencies and climate funds.

MDB financing directly contributes to the achievement of 9 of the 17 Sustainable Development Goals in the Eurasian region. The data show that these are mostly infrastructure projects related to transport, social matters, and sustainable infrastructure (SDG 9). The second position is held by clean energy, with 13 operations totalling USD 589.5 million (Figure 4).

Figure 4. Approved MDB Projects in 2023 and their Linkages to SDGs