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Public debt of Kyrgyzstan continues to grow

April 8, 2021

The public debt of Kyrgyzstan at the end of January this year exceeded $ 4.95 billion, of which 4.22 billion is external debt, the Ministry of Economy and Finance of the Kyrgyz Republic reports.

At the end of last year, the national debt of the Kyrgyz Republic amounted to more than $4.92 billion. These are record figures for the past few years.

It is planned to allocate over 37.26 billion soms to repay the public debt this year, this is also a record amount.

According to the recommendations of the International Monetary Fund, the public debt of Kyrgyzstan does not exceed the indicator of public debt sustainability. This IMF indicator allows the government to implement its financial processes without risking the economy.

The state of the economy will be pre-default when the level of public debt is too high and the state will not be able to pay the bills.

On the IMF recommendation, the public debt sustainability indicator is 70 percent of GDP for Kyrgyzstan.

In 2020, the public debt of the Kyrgyz Republic amounted to more than 68 percent of GDP and does not yet exceed the sustainable public debt indicator of 70%.

The IMF recommends that Kyrgyzstan reduce its national debt from 68 percent to 60 percent of GDP by 2025.