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Finance Ministry: Kyrgyzstan is not on the verge of financial abyss

The Ministry of Finance of Kyrgyzstan, having considered the article «On the verge of financial abyss: Kyrgyzstan asks to write off debts,» published on the website ia-centr.ru, considers this statement as unfounded. Press service of the ministry reported.

The Ministry of Finance is constantly working to reduce the level of external borrowings. However, in connection with the crisis associated with the COVID-19 pandemic, the level of external debt increased to 56.2 percent of GDP in 2020.

«Nevertheless, excluding loans received to fight the coronavirus and its consequences, the level of external debt is 42.6 percent of GDP, that is, there is no increase,» the ministry said.

This year, $ 338.4 million of external financial assistance were raised to carry out measures to prevent and combat the COVID-19 pandemic, as well as to support the budget, loans amount to $ 269 million of the sum.

These funds were used for:

  • Healthcare sector — $ 46.4 million;
  • Economic support (concessional lending to small and medium-sized businesses) — $ 31.8 million;
  • Budget support (for payment of pensions, benefits, wages to public sector employees and others) — $ 260.2 million.

At the same time, the ministry stresses that external loans are attracted on concessional terms and with a maximum repayment period.

«At present, the Ministry of Finance, in close cooperation with the Ministry of Foreign Affairs, continues to work on restructuring the external debt,» the press service said.