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🇰🇬 Kyrgyzstan /Economy & Trade

Kyrgyzstan's National Debt Nears $9 Billion; Finance Minister Calls It Safe

From 24.kg · () Russian

Translated from Russian, summarized and contextualized by DistantNews.

At a glance

Interview Named sources Context piece
  • Kyrgyzstan's national debt reached $8.9 billion by the end of 2025, representing 39.5% of its GDP.
  • The Finance Ministry asserts this debt level is safe and manageable, citing GDP growth that outpaced debt accumulation.
  • The country plans to issue $700 million in Eurobonds and is increasing its domestic debt to reduce currency risks and reliance on external creditors.

Kyrgyzstan's national debt has approached $8.9 billion, accounting for 39.5% of its Gross Domestic Product (GDP) by the close of 2025. Despite the absolute figure, the Ministry of Finance maintains that the level of public debt remains stable, manageable, and poses no risks to the country's sustainable development.

The current situation with public debt remains stable and manageable, and does not pose risks to the country's sustainable development. Therefore, the growth of public debt is not a cause for concern, especially if its level is under control and the funds are directed towards the development of the republic.

— Ruslan SuinalievAddressing public concerns about the rising national debt.

Finance Minister Ruslan Suinaliev explained that the growth in national debt is not a cause for concern, particularly when the debt-to-GDP ratio is controlled and borrowed funds are directed toward the republic's development. He highlighted that the country adheres to its debt management strategy, which sets a borrowing limit of 70% of GDP. Suinaliev emphasized that focusing solely on absolute debt figures does not provide a complete picture.

He pointed to significant GDP growth between 2021 and 2025, during which Kyrgyzstan's GDP expanded 2.5 times, from $9.3 billion to $22.6 billion. This growth has kept the debt-to-GDP ratio at an acceptable level. Projections indicate a further decrease in this ratio to 23% by 2030.

When only absolute values of public debt are presented, it does not show the full picture. For an objective view of the public debt situation, I draw your attention to the fact that from 2021 to 2025, the GDP of the Kyrgyz Republic grew from $9.3 billion (782.9 billion soms) to $22.6 billion (1,976.4 billion soms) – 2.5 times.

— Ruslan SuinalievExplaining why the debt-to-GDP ratio is a more relevant metric than absolute debt figures.

The country is also strategically increasing its domestic debt, which reached $3.6 billion by the end of 2025, comprising 40% of the total public debt. This increase, driven by the issuance of government securities to domestic investors, helps keep funds within the country. Growing domestic debt reduces currency risks, lessens the burden on international reserves, and decreases dependence on foreign creditors, aligning with recommendations from the International Monetary Fund.

Increasing the share of domestic debt helps reduce currency risks and the burden on the country's international reserves (as it is serviced in the national currency), and also reduces dependence on external creditors.

— Ruslan SuinalievHighlighting the benefits of increasing domestic borrowing.
DistantNews Editorial

Originally published by 24.kg in Russian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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