Kyrgyz National Debt Amounts to $3.6 bln
Wednesday 22 April 2015
BISHKEK (24.kg news agency) – Kyrgyz national debt amounts to $3.5973 bln, the bulk of which corresponds to external debt of $3.387 bln, or 46.9% of GDP. Internal debt amounts only to $210.3 mln (3.1% of GDP).
- Ministry of Finance in Bishkek
Kyrgyzstan owes to the Export-Import Bank of China the major part of this debt ($1.1158 bln), the rest to the International Development Association ($652.4 mln) and the Asian Development Bank ($565.5 mln). Debts of state treasury bonds with maturity period of 2-5 years ($138.9 mln) prevail in the structure of internal debt.
The fiscal deficit is projected to reach at least 5.0% of GDP in 2015 and 2016 as spending on teacher salaries and social protection rise, as announced, by half in 2015. With cautious revenue forecasts, the government has committed to limiting the deficit in the medium term by restraining expenditure on low-priority items. Revenue is projected at around 29% of GDP in 2015 and 2016 on improved tax and customs administration. Expenditure is forecast at 34% of GDP or higher, reflecting modest growth projections for 2015 and 2016 and higher current and capital spending partly related to the election year. Public debt is expected to rise further to 56% of GDP in 2015.
The current account deficit is forecast to stay at or near 16.0% in 2015 because of import-intensive spending on infrastructure, then ease to 15.0% in 2016. Exports are forecast to grow by 10.0% in 2015 and 2016, mainly from gains in agricultural products and textiles. However, weaker consumer demand in 2015 in the Russian Federation and other EEU members may worsen the trade outlook. In addition, tariff increases may reduce trade with countries outside the EEU, while failure to meet EEU standards or technical regulations could initially hinder exports to EEU members.