Kyrgyzstan's external debt to decrease to $4 bln by 2029

According to the forecast of the Ministry of Finance, there is a tendency for a gradual decrease in the volume of Kyrgyzstan's external public debt in US dollars, Kabar reports. 

The document states that in 2024 the external debt will amount to $4.7 billion, then by 2029 it will decrease to $4 billion.

The volume of external public debt in som equivalent depends on the impact of the US dollar exchange rate on it. According to macroeconomic forecasts, the dynamics of the exchange rate growth will continue in the coming years, which, accordingly, will affect the volume of external public debt expressed in soms.

There is also a tendency for the cost of servicing the external public debt to increase, which is associated with the onset of maturities on the principal amounts of many previously attracted loans.

Thus, in the forecast period, 2025–2029, more than 85% of the total amount of expenses on servicing the state external debt is planned to be directed towards repaying the principal amount of the debt.