11:12, 23 июля 2025, Bishkek - 24-kg.com news agency , Turdubek ALYMBAEV
The Cabinet of Ministers of Kyrgyzstan has approved an updated Public Debt Management Plan for three years — from 2025 to 2027. The document is designed to help the country control how much it borrows and how it repays its debts, with the goal of ensuring economic stability and sustainable development.
Public debt is the total amount the government borrows from other countries, banks, or by issuing bonds to finance key projects and programs. However, these debts must be repaid on time with interest, and excessive debt can lead to difficulties in meeting financial obligations.
The new plan helps to understand how much the government can borrow, when and how to make repayments, and how to reduce financial risks to avoid economic distress.
To increase transparency, the Ministry of Finance will now publish quarterly reports on the status of debt management, allowing citizens and investors to monitor the country’s fiscal health.
In recent years, Kyrgyzstan has succeeded in reducing its debt-to-GDP ratio. In 2021, the public debt stood at around 62 percent of GDP, but by 2023, it had decreased to approximately 58 percent— a positive indicator of improved debt sustainability.
The state pays interest and part of the debt every year. These expenses accounted for about 6.2 percent of total budget revenues in 2023, which is lower than in previous years.
The government also aims to borrow more domestically by issuing bonds in the local market, thereby reducing reliance on foreign loans and minimizing exposure to currency risks.
The plan envisages that the public debt will consist of 70 percent of external and 30 percent of domestic loans. Such a balance helps reduce repayment risks.