Kyrgyzstan’s debt nearing $4 billion

BISHKEK (TCA) — As of 31 May 2016 Kyrgyzstan’s state debt amounted to US $3.944 billion, including $3.698 billion of foreign debt and $246 million of internal debt, the country’s Finance Ministry said.        

Kyrgyzstan owes the largest amount ($1.394 billion) to China Export-Import Bank, which is crediting large infrastructure projects in the country.
 
The largest foreign creditors of Kyrgyzstan are the International Development Association (IDA) – $641 million, Asian Development Bank – $582 million, the Russian Federation – $270 million, Japan International Cooperation Agency (JICA) – $248 million, the International Monetary Fund – $185 million, the government of Turkey – $97 million, Germany’s KfW Bank – $81 million, and Islamic Development Bank – $61 million.

Kyrgyzstan’s internal debt totals $246.6 million. Most of this amount ($170.3 million) accounts for the government’s debt on state securities.

Kyrgyzstan’s state debt has reached almost 60 percent of the country’s GDP.

The Kyrgyz Government earlier said it is pursuing a tough policy in attracting external borrowings in line with the country’s National Sustainable Development Strategy for the period from 2013-2017.  

The National Sustainable Development Strategy of Kyrgyzstan until 2017 defines a foreign debt threshold at 60 percent of GDP, with borrowings to be attracted on favorable conditions only.  

The Government’s press service said that 99 percent of all external loans are favorable, with interest rates of 0.75-2 percent per annum and repayment periods of up to 40 years. More than 90 percent of the external loans have been taken for various investment projects.

Sergey Kwan

TCA

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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