BISHKEK (24.kg news agency) – At the parliamentary hearings “On the current financial and economic situation in the Kyrgyz Republic”, it was declared that the public debt reached 54% of GDP.

According to Deputy Finance Minister Almazbek Azimov, as on December 31, 2014 the total of government debt amounted to 214.8 bln soms, or 54.1% of GDP. “Of this amount, 94% [for] external debt (202.4 bln soms), or 50.9% to the level of GDP. It consists mainly of soft loans provided by donors. The largest creditor for us is the Chinese Export Import Bank: 33%. In 2015, for debt service will be spent 15.7 bln soms, of which 6.9 bln soms – an external, 8.8 bln – for servicing domestic debt. Constant work on writing off or restructuring debt is being held. From 2012 to 2014 written off debts by Turkey – $49 mln, $188.9 mln – Russia. From 2016 to 2025 another $300 mln will be gradually written off. There is also agreement on a debt swap with Korea, Germany. Total level of debt was reduced by $238 mln”, he added.

According to ADB, public debt is expected to rise further to 56% of GDP in 2015. 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.