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    When will Kyrgyzstan fully repay its external debt?
    Image source: иллюстративное
    Mariia Indina

    Published

    01/28/2025, 15:45

    When will Kyrgyzstan fully repay its external debt?

    As of the end of November 2024, Kyrgyzstan's public debt amounted to $6.551 billion, of which $4.481 billion was external debt. Key creditors holding the majority of the country's debt include the Export-Import Bank of China, to which Kyrgyzstan owes $1.655 billion, the International Development Association (part of the World Bank Group) with a debt of $734.53 million and the Asian Development Bank with $717.27 million.

    In 2024, Kyrgyzstan allocated 37.6 billion KGS to repay its external debt. However, in reality, from late December 2023 to November 2024, the country’s external debt decreased by $145.93 million (approximately 12.5–13 billion KGS). The largest repayments were made to the International Monetary Fund, amounting to $124.89 million and the Export-Import Bank of China, totaling $53.2 million.

    Nevertheless, this reduction does not fully reflect the actual situation, as Kyrgyzstan continued to secure new loans, which ultimately limited the decrease in its debt.

    In particular, in 2024, Kyrgyzstan increased its debt to the Kuwait Fund and the Saudi Fund by $4.59 million and $9.12 million, respectively; to OPEC by $1.75 million; to the Islamic Development Bank by $6.04 million; and most significantly, to the Asian Infrastructure Investment Bank, by $20.12 million.

    This means we do not see a real reduction in external debt simply because we continue to borrow. However, if Kyrgyzstan's external obligations are fixed at the November 2024 level, the Ministry of Finance forecasts that the country could fully repay its debt by 2073.

    Starting from 2054, Kyrgyzstan's payments on the principal debt will not exceed ten million dollars: in 2054, they will amount to $9.55 million, in 2055 — $7.3 million, in 2056 — $5.58 million, in 2057 — $4.91 million, and so on. The final debt payment is expected in 2073 and will be a symbolic $40,000. Additionally, Kyrgyzstan will stop paying interest on its external debt by 2060.

    However, on the path to this long-term goal, it is important to note that the country has entered a period of peak repayments. From 2025 to 2031, Kyrgyzstan will annually pay between $415 million and $311 million toward the principal debt, as well as between $68.5 million and $29.8 million in interest.

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