AN EMPIRICAL INVESTIGATION OF CAPITAL AVAILABILITY IN UZBEKISTAN: FINANCING CONSTRAINTS AND THEIR IMPACT ON CORPORATE LEVERAGE DYNAMICS

This study examines the access to capital for businesses in Uzbekistan, focusing on the high-cost lending environment, its impact on firms' financing decisions, and the resultant capital structure. Despite a growing domestic market and government reforms aimed at fostering investment, Uzbek firms face an average business loan interest rate of approximately 16% in 2023. This rate, substantially higher than in developed markets, results from institutional underdevelopment and a nascent venture capital ecosystem. The high cost of debt leads firms to rely more heavily on equity and internal financing, which corresponds with observed lower leverage ratios compared to global counterparts. The implications for Uzbekistan's economic growth and policy recommendations are discussed.