Kyrgyzstan's domestic debt rose by 1.3 billion KGS this week

The volume of government treasury bonds placed on the National Bank's trading platform increased by 1.3 billion KGS this week.

As of February 18, the volume of government bonds in circulation amounted to 301.04 billion KGS, compared to 299.74 billion KGS on February 13. Thus, domestic debt increased by 1.3 billion KGS.

The growth was due to an increase in the volume of three-year bonds—their portfolio expanded from 62.16 billion to 63.46 billion KGS. No changes were recorded for other government securities with different maturities.

The auction for placement took place on February 13. The volume announced by the Ministry of Finance was 1.3 billion KGS. This coincided with investor demand, and as a result, the entire volume was sold.

The yield on satisfied bids settled at a coupon rate of 12.86% per annum, both minimum and maximum.

The structure of domestic debt in government bonds as of February 18 was as follows:

• 3-year bonds — 63.46 billion KGS;
• 5-year bonds — 33.15 billion KGS;
• 7-year bonds — 60.27 billion KGS;
• 10-year bonds — 53.98 billion KGS;
• 15-year bonds — 79.41 billion KGS;
• 20-year bonds — 10.78 billion KGS.

The largest share is still accounted for by 15-year securities, which exceed 79 billion KGS.

The growth of the government bond portfolio reflects the authorities' continued policy of increasing domestic borrowing to finance budgetary needs.