Kyrgyzstan’s debt to China has declined from approximately $1.7 billion to $1.4 billion as the country continues repaying earlier loans and avoids taking on new Chinese borrowing, Chairman of the Cabinet of Ministers Adylbek Kasymaliev said.

In an interview with the Kabar news agency, Kasymaliev discussed Kyrgyzstan’s external debt situation, the role of foreign creditors, the government’s approach to managing public finances, and plans to increase social spending as budget revenues grow.

Why has Kyrgyzstan’s debt to China decreased?

According to Kasymaliev, the main reason for the decline in Kyrgyzstan’s debt to China is that the country has not received new loans from Beijing in recent years.

Instead, Kyrgyzstan has focused on gradually repaying previously issued loans. As these repayments continue, the total amount owed to China has decreased from around $1.7 billion to approximately $1.4 billion.

How much of Kyrgyzstan’s external debt is owed to China?

Kasymaliev said China currently represents just over 20% of Kyrgyzstan’s external debt.

Although China remains one of the country’s largest creditors, the share of Chinese loans in Kyrgyzstan’s external debt has declined as existing obligations are repaid.

Who are Kyrgyzstan’s other major creditors?

The chairman of the Cabinet of Ministers said Kyrgyzstan’s other major creditors include the Asian Development Bank, the World Bank, and the International Monetary Fund.

Kasymaliev noted that most loans provided by these international financial institutions are issued on long-term repayment schedules and under preferential conditions.

Such financing is generally used to support development projects and other areas of economic activity.

What is Kyrgyzstan’s current public debt level?

Kasymaliev reported that Kyrgyzstan’s public debt currently stands at approximately 42% of gross domestic product (GDP).

While the country’s legislation allows public debt to increase to 60% of GDP, he said President Sadyr Japarov has instructed the government to maintain the figure below 50%.

The government’s current approach is aimed at keeping debt levels manageable while continuing to finance economic and social priorities.

Does Kyrgyzstan consider its public debt situation critical?

Kasymaliev emphasized that the level of public debt alone does not mean the country is facing a critical financial situation.

He explained that debt indicators must be viewed in a broader economic context, including a country’s economic capacity and ability to manage its obligations.

For comparison, he pointed to developed countries where public debt levels often exceed annual GDP.

What does a budget surplus mean for Kyrgyzstan?

Kasymaliev also addressed the meaning of a budget surplus, explaining that it does not mean the government has unused money simply sitting in reserves.

According to him, additional budget revenues are planned in advance for specific purposes. These funds are directed toward development projects, the capitalization of state-owned enterprises, and the repayment of public debt.

How much has Kyrgyzstan’s budget grown?

Kasymaliev highlighted significant growth in the size of Kyrgyzstan’s national budget over the past decade.

He said that in 2015, the country’s national budget amounted to approximately 115 billion soms. By the end of last year, the figure had increased to more than 600 billion soms.

How much does Kyrgyzstan spend on wages?

The Cabinet chairman said that more than 200 billion soms are currently allocated from the state budget for wages alone.

The increase in budget revenues has allowed the government to raise spending on salaries and other social commitments.

Will Kyrgyzstan continue increasing wages and social payments?

Kasymaliev said the authorities plan to continue raising wages, pensions, and benefits as government revenues continue to increase.

However, he stressed that improving the living conditions of unemployed citizens requires more than social payments. According to him, the country must focus on creating new employment opportunities and attracting investment for the construction of enterprises.

What is Kyrgyzstan’s broader economic priority?

According to Kasymaliev, Kyrgyzstan’s financial strategy combines responsible debt management with efforts to expand economic opportunities.

The government aims to maintain control over public debt while increasing investment, supporting businesses, creating jobs, and ensuring that growing budget revenues contribute to broader economic development.