Tajikistan paid off $75 mln of country's national debt in 2023

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In the first nine months of 2023, Tajikistan allocated 212.3 million somoni (approximately $20 million) for servicing its external debt, according to the Minister of Finance, Fayziddin Kakhkhorzoda, during parliamentary hearings on the implementation of the law "On the State Budget of Tajikistan for 2023," Asiaplustj.info reports.

Specifically, he noted that 139 million somoni were directed towards repaying the principal debt, and 73.3 million somoni were allocated for interest on loans.

"In addition to this, the servicing of the domestic government debt for this period amounted to 603.7 million somoni ($55 million): 568.1 million somoni went towards repaying the principal debt, and 35.6 million somoni – towards interest," explained the minister.

During January-September of this year, "for additional financing of sectors of the national economy," 15 new credit and grant agreements were signed, with a total amount of 284.7 million somoni ($26 million), said Kakhkhorzoda.

He emphasized that 92.4% (263.1 million somoni) of these funds constitute gratuitous assistance, and only 7.6% (21.6 million somoni) are credits.

"In other words, the norms and requirements of the public debt management strategy and the recommendations of authoritative international organizations regarding the ratio of public debt to GDP are fully complied with, and the volume of government debt is at a safe level," concluded the minister.

According to the Ministry of Finance, at the beginning of the second half of this year, the total volume of the country's debt amounted to $3.6 billion, which equals 31.1% of the country's GDP. In particular, external debt was $3.2 billion, and internal debt was $400 million.

In mid-August of this year, the head of the Ministry of Finance stated at a press conference in Dushanbe that the volume of the public debt is at a comfortable level. He emphasized that, according to the public debt management strategy, a critical level is considered when the debt-to-GDP ratio reaches 60%.

"Changes (in external debt) will occur next year when we begin to sign credit agreements for Rogun," he said.

Earlier, it was reported that in 2024, the Tajikistan government plans to sign agreements to attract multi-million funds from international financial institutions to finance the Rogun project.

The chief creditors, according to the Minister of Finance, include the Export-Import Bank of China, the World Bank, and the Asian Development Bank.

CentralasianLIGHT.org

November 14, 2023