Internal debt in the structure of the public debt of Kyrgyzstan will increase in the future. The Ministry of Finance reported.
As of January 31, 2023, the size of the state internal debt of the country amounted to 95,660.52 billion soms ($1.1 billion). It is 10.32 percent of GDP. The ratio of domestic debt to total public debt to date is 19.7 percent.
RELATED NEWS
Public debt of Kyrgyzstan grows by $52,96 million for month
«The Ministry of Finance, in order to implement large-scale state programs and development projects, will also use new tools from internal sources. This means that the size of internal debt will grow. This is due to the fact that internal borrowings have a number of advantages over external ones. There is no risk of exchange rate differences; when paying interest and principal amount, internal creditors will receive the income. Adjusted for inflation and devaluation, the cost of servicing internal debt is much lower than the cost of servicing external debt. Predominance of internal debt in the structure of public debt is observed in many countries of the world,» the ministry said.
It is noted that the funds for servicing the public debt are provided in full in the republican budget. It is repaid on time.
Source: 24.kg News Agency