Kyrgyzstan’s public debt in dollars is gradually decreasing, but its amount in soms depends on the exchange rate. It is expected that the dollar exchange rate will grow, and this will affect the amount of debt in soms. This forecast is presented in the report of the Finance Ministry on the main directions of fiscal policy for 2025-2029.
Debt servicing costs will also increase in the coming years, as the time comes to repay old loans. From 2025 to 2029, more than 85 percent of debt servicing costs will be used to repay the principal amount.
The document states that the formation and execution of the budget for servicing the external debt of the Kyrgyz Republic are carried out taking into account the full and timely fulfillment of obligations. In the next five years (2025-2029), debt sustainability is expected to improve, that is, a reduction in the share of public debt in relation to GDP and exports is expected. This will be possible due to economic growth, increased exports and repayment of part of the debt.
