Finance Minister of Kyrgyzstan Almaz Baketaev announced size of the public debt at a meeting of Eldik parliamentary group and Alliance faction.
According to him, the total amount of public debt is $6.5 billion, of which approximately $4.5 billion is external debt, the rest is internal.
According to him, the Finance Ministry receives internal loans at an average of 12-14 percent per annum, and external loans at 2 percent. The minister explained the transition to internal loans, which are received at higher rates, by the fact that external debts are issued in foreign currency, the exchange rate of which floats and can rise significantly.
«Secondly, if you consider the exchange rate and interest rate together, it may turn out that we pay more on external debts. Thirdly, to pay off debts, we buy currency. And then we send it abroad, and this money works for the economy of another country. And by receiving internal loans, we pay our entities: banks, the Social Fund, and so on,» the minister explained.
