Tajikistan's External Debt Hits $3.25 Billion

Illustrative photo / Bloomberg

As of October 1, Tajikistan's external debt reached $3.25 billion, according to a report by Asia-Plus citing the Ministry of Finance. This marks a slight 0.2% increase, or $7.1 million, compared to January 1, The Caspian Post reports citing The Times of Central Asia.

Approximately 96% of the debt comprises direct government debt, incurred to meet state obligations, while $138.8 million is under state guarantees. Tajikistan’s external debt-to-GDP ratio is 27%, which is considered a favorable level.

The largest creditors include the World Bank ($370 million), the Asian Development Bank ($260 million), the Islamic Development Bank ($212 million), and the European Bank for Reconstruction and Development ($167 million).

A significant portion of the debt, $500 million, consists of Eurobonds issued in 2017 to finance the completion of the Rogun Hydroelectric Power Plant. While the government adheres to the repayment schedule for these bonds, only interest payments have been made so far.

Next year, Tajikistan is expected to seek additional loans from development partners to continue work on the Rogun Hydroelectric Power Plant. This move is anticipated to substantially increase the country’s external debt.