AKIPRESS.COM – Kyrgyzstan’s public debt currently accounts for 42% of its gross domestic product (GDP), with external debt accounting for approximately 22% of GDP, Chairman of the Cabinet of Ministers Adylbek Kasymaliev said on August 4.
According to him, China remains Kyrgyzstan’s largest creditor. According to him, the debt to China is decreasing.
“Previously, the debt to China was $1.7-1.9 billion. Now it’s around $1.4 billion. We shouldn’t borrow more than 50% from any one country. Today, China’s share of external debt is just over 20%,” Kasymaliev said.
Besides China, he named the Asian Development Bank and the World Bank among Kyrgyzstan’s major creditors. He added that these organizations provide long-term, preferential loans at low interest rates. He also mentioned the International Monetary Fund as a creditor.
Kasymaliev emphasized that Kyrgyz law limits public debt to no more than 60% of GDP. However, the authorities are aiming for a figure no higher than 50%.
“Today, public debt is 42% of GDP,” the Chairman noted.
He also cited public debt figures for several developed countries. According to him, the debt-to-GDP ratio is 121% in the United States, 251% in Japan, 102% in the United Kingdom, 112% in France, 136% in Italy, 106% in Canada, 102% in Spain, 175% in Singapore, 105% in Belgium, and 159% in Greece.
“All countries borrow, including Kyrgyzstan. Today, this figure is 42%, and our external debt is 22% of GDP,” Kasymaliev said.
According to him, Kyrgyzstan is gradually reducing its external debt and increasing domestic borrowing.
“We are currently reducing our external debt and increasing our internal debt. Internal debt is funds borrowed by our entrepreneurs within the country. We have also created opportunities for citizens,” the Chairman said.
