Kyrgyzstan to fully repay China debt by 2035, president says

Kyrgyzstan's President Sadyr Japarov has assured the public that the nation will fully repay its debt to China's Eximbank by 2035, addressing concerns about potential dependence on Beijing.

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Before 2020, our total debt, external and domestic, amounted to $5 billion, equivalent to 70 percent of GDP. Of this, external debt was $4.2 billion, while domestic debt stood at $708 million. In 2026, total debt reached $10 billion, but it amounts to 37 percent of GDP. External debt is $5.2 billion, while domestic debt is $4.8 billion. Our domestic debt is growing, not external debt. External debt has increased by just $1 billion.

In an interview, Japarov detailed Kyrgyzstan's debt situation, contrasting figures from before 2020 with the present. He stated that while total debt has grown, the external debt has seen a modest increase of only $1 billion since 2020. Crucially, he clarified that this specific borrowing was not from China but from various international financial institutions.

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this $1 billion was borrowed not from China but from various international financial institutions, and that over the past five years Kyrgyzstan had not borrowed a single tyiyn from China.

Japarov highlighted that Kyrgyzstan has actively reduced its debt to China's Eximbank, paying off $500 million over the past five years, leaving a balance of $1.3 billion. He expressed confidence that this remaining amount will be settled by 2035. The president also pointed to the government's strategy of securing loans for self-financing projects, such as the Kambar-Ata-1 hydropower plant, whose future revenues are expected to cover loan repayments without burdening the state budget.

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On the contrary, we have repaid $500 million of the debt. Before 2020, we owed $1.8 billion to the Export-Import Bank of China (Eximbank). Over five years, we reduced this debt by $500 million, and now we owe the bank $1.3 billion. We will fully repay it by 2035.

While acknowledging that some loans, like those for road construction, may not be directly commercial, Japarov emphasized a commitment to fiscal prudence. He set a target for the government to ensure total debt does not exceed 50 percent of the country's GDP, despite having the capacity to borrow up to 70 percent.

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We can take out loans up to 70 percent of GDP, but we don’t do that. I am giving the task that the debt should not exceed 50 percent of GDP.