Kyrgyzstan’s total public debt reached $8.38 billion (732.7 billion soms) by end-June 2025, according to the draft 2026 state budget released by the Ministry of Finance. This marks a sharp $1.52 billion increase from just two months prior (end-April 2025: $6.86 billion), signaling accelerated borrowing both domestically and internationally.
Debt Breakdown:
- External debt: $5.24 billion (62.5%)
- Domestic debt: $3.14 billion (37.5%)
The external portfolio comprises over 300 loans, 99% of which are concessional — carrying interest rates between 0.1% and 2% annually, with repayment terms stretching up to 50 years. Most loans feature fixed rates, except those from the EBRD, AIIB, and Denmark.
Top 5 Creditors (over 70% of external debt):
- China — largest creditor
- International Development Association (IDA)
- Asian Development Bank (ADB)
- International Monetary Fund (IMF)
- Eurasian Stabilization and Development Fund (ESDF)
Other notable lenders: Islamic Development Bank (3.8%), Japan (2.8%).
Analysts warn that such rapid debt accumulation over a two-month window is unusual and demands greater transparency from the Finance Ministry, which releases debt data irregularly — hindering public oversight and fiscal risk assessment.
Despite favorable borrowing terms, the rising debt burden raises concerns about long-term budget sustainability and Kyrgyzstan’s capacity to service obligations amid global economic uncertainty. This surge comes even as the government reports strong growth in tourism and foreign investment — including a recent entry into the Financial Times’ “Top 50 Global Destinations” — suggesting borrowed funds are being channeled into infrastructure and deficit financing.
CentralasianLIGHT.org
Sept. 17, 2025