Kyrgyz president announces plans to fully repay country's external debt by 2035

BISHKEK. Nov 10 (Interfax) - Kyrgyzstan will fully repay its external debt by 2035 without any threat to the economy, Kyrgyz President Sadyr Japarov said.

"We will completely get rid of the accumulated external debts by 2035, and without much difficulty. This is becoming possible thanks to high rates of economic growth, which will continue for the next 15-20 years," Japarov said in an address to the nation.

According to Japarov, 285.4 billion som ($3.3 billion) was allocated for the repayment of the state debt during 2020-2025, of which 170.5 billion som ($1.9 billion) was external debt and 114.9 billion som ($1.4 billion) was internal debt.

The level of state debt relative to GDP has decreased to 42%, whereas previously it reached 68%-84%, he said. "Consequently, there is no reason for concern. All attracted funds are directed exclusively towards economic development," he said.

The largest infrastructure projects, including the construction of the Kambar-Ata HPP and the China-Kyrgyzstan-Uzbekistan railway, are being implemented on terms that do not create a debt burden on the budget, he said.

"The railway project is being implemented as a commercial one. The three countries are jointly building the railway, and after 35 years it will fully become the property of Kyrgyzstan," Japarov said.

According to his information, Kyrgyzstan's external debt remains at the level of $4.5 billion.