President Sadyr Japarov of Kyrgyzstan has announced plans to entirely eliminate the country's external debt by 2035. In an interview with news agency Kabar, President Japarov outlined his vision for fiscal responsibility and self-sufficiency.
"By 2035, we will repay our external debts in the amount of $5bn, which have accumulated to date," President Japarov stated.
He expressed confidence in his administration's ability to achieve this goal, attributing it to the improving economic conditions and the dedication of his team.
"Thank God, we have the power to do this. Our economy has improved. As long as there is peace and stability in the country, we will easily pay."
President Japarov emphasized that every dollar borrowed will be allocated to specific projects aimed at enhancing self-sustainability. One notable project mentioned by the president is the construction of the Kambar-Ata 1 hydroelectric power station, which is expected to receive a substantial portion of the allocated funds.
"We hire them for self-sustaining projects," he affirmed.
Despite the possibility of the external debt increasing to $10-15bn in the future, President Japarov remained undaunted, asserting that the focus remains on the ultimate goal of debt repayment.
"Even if our external debt reaches $10-15bn, we don’t have to worry about anything," he stated confidently. "The most important thing is that by 2035 we will fully repay previously incurred debts. In the future, no matter how much we borrow, every project will pay for itself."
As per the data from the Ministry of Finance of Kyrgyzstan, the republic’s total public debt stands at almost $6bn, with $4.5bn being external debt and $1.5bn internal debt.
Meanwhile, as per the World Bank's International Debt Report 2023, Uzbekistan found itself grappling with an external debt of $49.1bn in 2022, a leap from $7.98bn in 2010. The report outlined a consistent and noteworthy increase in Uzbekistan's public and publicly guaranteed long-term external debt stocks from 2010 to 2022. Commencing at $3.42bn in 2010, this segment of the debt more than doubled to $9.28bn by 2018, reflecting an increase of approximately 171.35%.
In 2022, Uzbekistan's government debt reached 36.40% of its Gross Domestic Product (GDP), marking a notable rise from the country's average government debt-to-GDP ratio of 24.77% recorded between 1998 and 2022. This ratio, which peaked historically at 59.40% in 2001 and reached its lowest at 6.70% in 2011, reflects the fluctuating nature of the nation's fiscal management and economic health. The 2022 figure indicates a moderate level of government debt relative to the nation's economic size, suggesting a manageable debt burden compared to the extreme highs and lows experienced in the past.
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