Kyrgyz debt continues growth in May

By bne IntelliNews July 6, 2016

Kyrgyzstan’s public debt increased by 0.3% on the month to reach $3.94mn as of the end of May, easing from a 1.8% monthly hike in April, data from the finance ministry showed. The debt rose by 3.4% since the beginning of the year.

The debt increase was driven by the government’s continued borrowing to finance infrastructure projects. One such project is the CASA-1000 power link that envisages Kyrgyzstan and Tajikistan combining their hydropower resources to export excess electricity to Pakistan and Afghanistan during the summer months. Kyrgyzstan is relying on financing from international lenders to co-finance its $233mn share of the $1.17bn project.

The end-May debt accounted for 59.3% of the 2016 GDP forecast, down 63.5% in April because of the appreciation of the Kyrgyz som against the US dollar: a strong som increases the value of the country’s GDP in dollar terms bringing the ratio down.

Foreign debt makes up most of the Kyrgyz public debt and stood at $3.698bn at the end of May, the figures also showed. In monthly terms, the external debt remained broadly unchanged, while it rose by 2.7% since the beginning of the year.

China’s Exim Bank stands as the country’s largest creditor with total outstanding credit worth $1.39bn at the end of May. The World Bank’s International Development Association (IDA) follows with $6412mn, ahead and the Asian Development Bank (ADB) with $582mn.

Public debt has reached worrisome levels and should be contained, the International Monetary Fund (IMF) said in a recent report. “Prudence should be exercised when selecting new infrastructure projects, and contracting and guarantying new public debt. Debt is close to moving from medium to high risk of debt distress, which would reduce access to concessional and nonconcessional borrowing,” the fund points out. The IMF expects the debt-to-GDP ratio to exceed 70% this year and called on the government to implement fiscal tightening measures to stem the debt rise.

Related Articles

Ukraine central bank slams PwC over PrivatBank audit

The National Bank of Ukraine (NBU) has accused PricewaterhouseCoopers, PrivatBank's auditing firm, of providing an inadequate evaluation of collateral under loans provided by the çountry's ... more

Macedonia to issue Eurobond in 2017 if conditions are "extremely favorable"

Macedonia sees no need to issue a new Eurobond issue in 2017, but this may happen if the circumstances on the international money market are extremely favorable, bne IntelliNews has learned from ... more

Speculation over a second downgrade grows as S&P drops outlook on Polish economy

Speculation that Poland could suffer a second downgrade of its sovereign rating at the end of the week intensified on January 10, as Standard & Poor’s lowered its estimates on economic growth. ... ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss