Fitch Affirms Tashkent 'BB-' Rating (stable)

According to Fitch experts, despite the economic impact of the coronavirus and rising costs, they will be balanced with the average level of debt.

At the same time, collected taxes amounted to 30% of the city's total revenues in 2020. Government transfers have gradually increased over the past five years and accounted for 57% of total revenue in 2020, up from 14% in 2016.

Most of all, the city authorities spent on education and medicine, which last year accounted for 30% of the funds spent. Fitch analysts believe that spending dynamics are balanced with revenues, but there is a risk that government decisions could negatively affect spending.

At the same time, the city's investment program, which accounted for 23% of total spending in 2020, will provide some leeway in the short term. In the long term, capital investment pressures may persist due to Tashkent's high infrastructure needs.