Kyrgyzstan President Orders National Debt Cap at 50% of GDP

President Sadyr Japarov has issued a directive to Kyrgyzstan's cabinet, mandating that the national debt must not exceed 50 percent of the country's Gross Domestic Product (GDP). This instruction comes as Japarov reported the current national debt stands at 39 percent of GDP.

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The head of state instructed the cabinet not to allow the level of public debt to exceed 50 percent of GDP in the future.

Japarov highlighted a substantial improvement in the country's fiscal management, noting that the external debt reached approximately 120 percent of GDP prior to 2020. He asserted that unlike in previous years, all newly acquired loans are now allocated to specific, tangible projects, with their utilization closely monitored. "Every attracted loan today, unlike in previous years, does not disappear without a trace," Japarov stated.

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Every attracted loan today, unlike in previous years, does not disappear without a trace.

The president further emphasized that projects financed through borrowed funds are expected to generate sufficient returns to cover the loan amounts in the future. While acknowledging that some countries have national debts exceeding 100 percent of GDP, Japarov stressed that Kyrgyzstan should not use such figures as a benchmark, indicating a commitment to fiscal prudence.

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Projects financed by borrowed funds should, in the long run, independently ensure the return of invested money.