Kyrgyzstan's debt to China falls to $1.4bn as public debt remains below 50% of GDP

Kyrgyzstan's financial obligations to China have decreased to $1.4 billion from an earlier figure of approximately $1.7 billion, as reported by Adylbek Kasymaliev, Chairman of the Cabinet of Ministers. He stated that Kyrgyzstan has refrained from acquiring new loans from China in recent years, focusing instead on servicing its existing debt.

In an interview with the Kabar news agency, Kasymaliev highlighted that China now constitutes slightly over 20% of Kyrgyzstan's total external debt. He identified other significant international creditors as the Asian Development Bank (ADB), the World Bank, and the International Monetary Fund (IMF), noting that the majority of these loans were extended with long-term, favorable conditions.

Kasymaliev further disclosed that Kyrgyzstan's overall public debt is currently around 42% of its gross domestic product (GDP). While national law permits public debt to reach up to 60% of GDP, President Sadyr Japarov has directed the government to maintain this figure below 50%.

The Cabinet chairman emphasized that the level of public debt alone does not necessarily signal a dire financial state, pointing out that several developed nations have public debt exceeding their annual GDP.

Regarding the nation's budget surplus, Kasymaliev explained that any additional income is proactively designated for development initiatives, bolstering state-owned enterprises, and debt servicing, rather than being left idle.

He noted a substantial expansion of Kyrgyzstan's state budget over the last decade, growing from roughly KGS 115 billion (exceeding $1.3 billion) in 2015 to over KGS 600 billion (approximately $6.9 billion) by the close of the previous year.

According to Kasymaliev, more than KGS 200 billion (over $2.2 billion) of the current budget is allocated for salaries. He also affirmed the government's commitment to progressively increasing wages, pensions, and social benefits as budget revenues continue to rise. Additionally, he stated that generating new employment opportunities and attracting investments for the establishment of new businesses will remain key objectives for enhancing employment rates and living standards.