The total public debt of Kyrgyzstan amounted to 758.6 billion soms (about $8.65 billion) as of August 31, 2025, according to data from the Ministry of Finance, reports Akchabar.kg.
Over the month, the debt increased by $238.99 million — entirely due to domestic borrowing — while external debt fell by 490 million soms ($5.6 million).
According to the ministry’s report, domestic debt rose from 277.6 billion soms in July to 298.5 billion in August — an increase of almost 21 billion soms. The main driver of this growth was the expanded issuance of government treasury bonds.
By the end of August, the country’s obligations on bonds reached 295.7 billion soms, with an additional 2.7 billion soms owed through 12-month treasury bills. As a result, the share of domestic obligations in total public debt grew from 37.8% in July to 39.5% in August.
Thus, the main source of public debt growth remains the issuance of securities to finance budgetary commitments.
According to the National Bank of Kyrgyzstan, domestic debt continues to rise. By mid-October, the volume of treasury bonds traded on the NBKR exchange platform reached 291.49 billion soms — an increase of 870 million soms following the October 17 auction.
The growth was driven by the issuance of 3- and 7-year bonds: the volume of 3-year bonds increased by 260 million soms (to 58.7 billion), and 7-year bonds — by 610 million soms (to 59.4 billion).
At the October 17 auction, the Ministry of Finance managed to raise funds at an interest rate of 12.86% for 3-year bonds (around one-third of the planned 800 million soms) and 15.25% for 7-year bonds (610 million out of the planned 1.2 billion).
Despite higher interest rates on domestic borrowing, the Cabinet of Ministers continues to actively use the internal market to finance current expenditures and state projects. According to experts, this strategy aims to reduce currency risks and decrease dependence on foreign creditors amid fluctuations in the dollar exchange rate.
CentralasianLIGHT.org
October 27, 2025