Kyrgyzstan Reaches New Heights of Debt
Kyrgyzstan’s state debt has almost hit the $4 billion mark, sailing upward past a government-imposed debt ceiling.
That figure, which is dated to the start of June, is a big leap from the figure reported at the end of March, when debt stood at $3.7 billion.
The Finance Ministry’s press service said on July 1 that $3.7 billion is owed to foreign creditors, mainly to the state-run Exim Bank of China, which is owed $1.4 billion. Another $642 million is owed to the International Development Association, a branch of the World Bank that is focused on development in poor countries.
The scale of the debt is not in itself necessarily catastrophic, although it does surpass the 60 percent debt-to-gross domestic product ratio ceiling mandated by parliament in 2014. Deputies have proposed legislation to raise that ceiling as a way to authorise raising additional outside funds for major projects.
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