Working Paper “Sovereign Financing in Eurasia: H1 2024”

The EFSD reported that sovereign financing approved in Eurasia during the first half of 2024 totaled US $2.3 billion

International financial institutions and development agencies operating in Eurasia –Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Russia, Tajikistan, Turkmenistan, and Uzbekistan – approved a total of US $2.3 billion in sovereign financing during the first six months of 2024. A total of 96 projects are currently ongoing, underscoring the significant role these institutions play in financing the countries.

These figures are presented in the report titled Sovereign Financing in Eurasia: H1 2024, published by the Eurasian Fund for Stabilization and Development (EFSD), which draws on data from the Sovereign Financing Database (SFD).

In H1 2024, EFSD member states accounted for 72.9% of the approved funding, amounting to US $1.6 billion. Kazakhstan received the largest share of funding (US $693.5 million), followed by Armenia (US $527 million), Tajikistan (US $332.4 million), and Kyrgyzstan (US $192.9 million).

The World Bank (WB) and the European Bank for Reconstruction and Development (EBRD) provided the highest levels of sovereign financing for the region during the first half of the year, together accounting for 77.7% of the total. The WB approved US $1.9 billion in funding (49.9% of the total), while the EBRD extended US $609.1 million (27.8%). Other contributors included the Islamic Development Bank (IsDB) with US $195 million (8.3%), the Asian Development Bank (ADB) with US $132.9 million (6.1%), and the EFSD with US $100 million (4.6%).

Kazakhstan benefited from six sovereign financing operations totaling US $693.5 million, including four technical assistance operations, one investment financing operation, and one stabilization program.

Armenia, with the EBRD as its main creditor (US $251.4 million), secured US $527 million in financing, an increase of US $178.1 million compared to the entire previous year. Notable financing was approved for operations in transport, public administration, and economic policy.

In H1 2024, Tajikistan received US 332.4 million in financing, a figure close to the total for 2023 (US $347.2 million). The energy and transport sectors were the primary recipients of these funds. The country’s key creditor is the IsDB with US $195 million in approved financing.

The Kyrgyz Republic saw the approval of 19 operations, totaling US $192.9 million, in H1 2024. The largest amount of assistance was allocated to investment financing for infrastructure development. The country’s main creditor is the WB (US $114.6 million).

In H1 2024, the EFSD approved US $100 million in financing for Armenia to support economic transformations. These funds, intended to support the 2024 budget, are contingent upon the implementation of the Armenian government’s reform program. In addition, the EFSD initiated technical assistance projects in the Kyrgyz Republic and Tajikistan. In Kyrgyzstan, for instance, the EFSD began supporting the development of an automated taxpayer rating system and a taxpayer digital profile. In Tajikistan, it launched a project to expand program budgeting, aimed at improving public administration.

During the first half of the year, the Eurasian region hosted several important international events, including the annual meetings of the ADB in Tbilisi, the EBRD in Yerevan, and high-level CAREC meetings in Astana.

Launched in 2022, the Sovereign Financing Database is a unique research project by the EFSD, collecting data on the activities of international financial institutions and development agencies in the countries comprising the macro-region. The SFD uses a variety of open-source information, including the official websites of international financial institutions, their reports and other primary data. The methodology allows collecting data on various types of sovereign financing such as stabilization and investment loans, grants, and technical assistance projects.

The Sovereign Financing Database (SFD) can be accessed here.

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