FINANCIAL ANALYSIS AND SOLVENCY ISSUES OF STATE-OWNED ENTERPRISES IN UZBEKISTAN

Abstract

This article examines the financial condition and insolvency risks of state-owned enterprises (SOEs) in Uzbekistan, which remain critical to the national economy, as it contributes nearly 50% of GDP. Despite ongoing reforms, many of the SOEs undergo solvency challenges due to excessive leverage, inefficient operations, and soft-budget constraints. The study analyzes key indicators such as liquidity, profitability, and solvency. According to the results, there are slight improvements in liquidity and profitability in 2023, yet high debt levels and quasi-fiscal pressures continue to undermine overall financial resilience. In addition, governance remains a central issue, because of weak board independence and limited enforcement of financial discipline. The paper argues that unless structural vulnerabilities are addressed through enhanced oversight, legal reforms, and a results-driven privatization strategy, SOEs will remain a key source of fiscal risk and prevent country’s progress toward economic sustainability.