Kyrgyzstan could repay its debt to China right now, but is not doing so. Why?

If we were to repay the debt to China now, it would account for just 16 per cent of the state budget.” This was announced by Deputy Minister of Finance Umutjan Amanbaev at a meeting of the relevant committee of the Jogorku Kenesh.

According to him, Kyrgyzstan currently owes China $1.4 billion. This accounts for 27 per cent of the country’s total borrowings. Previously, China’s share stood at 40 per cent.

“We carried out an analysis and found that, up until 2020, the debt to China accounted for 80–90 per cent of the revenue side of the national budget, and at certain times reached 100 per cent. As of the end of the first seven months of this year, it stands at 16 per cent. In other words, if we were to repay the debt to China now, it would account for only 16 per cent of our national budget. This means that we are able to repay it. However, there are specific procedures for debt repayment, so it is better to settle it in a timely manner,” he said.