The government will borrow billions of KGS again. The Ministry of Finance has announced a bond issue

In July, the Kyrgyz Ministry of Finance plans to raise 6.8 billion KGS by issuing government securities on the National Bank and the Kyrgyz Stock Exchange.

As before, the bulk of the borrowing will consist of long-term government treasury bonds.

Specifically, four Treasury bond auctions totaling 5.6 billion KGS are scheduled to take place at the National Bank over the course of the month. The Ministry of Finance intends to issue:

• two series of 10-year bonds with a coupon rate of 8%, each worth 1.5 billion KGS;
• two series of 5-year bonds with a coupon rate of 6%, each worth 1.3 billion KGS.

In addition, the Kyrgyz Stock Exchange plans to issue government securities worth another 1.2 billion KGS. Of this amount:

• 600 million KGS are planned to be raised through the issuance of 12-month government bills;
• another 600 million KGS will come from the placement of 2-year government bonds with a 5% coupon rate.

Thus, the government’s total borrowing plan on the domestic market in July amounts to 6.8 billion KGS.

The structure of the placements shows that the Ministry of Finance continues to prioritize long-term financing. This approach allows the government to lock in borrowing costs for a longer period and reduce the need for frequent debt refinancing.