Jeenbekov: Public policy on external debt management has changed

Bishkek, Feb.7, 2020. /Kabar/. "We have changed the state policy on external debt management. The Ministry of Finance is working on write-off of credits, prolongation of terms of their payment, a special subdivision has been created in it,” President Sooronbay Jeenbekov emphasized on Thursday at the meeting with residents of Ysyk-Ata region of Chui Oblast.

The President noted that for the last two years it was possible to reduce the volume of external debt, in relation to the GDP of the country its amount has decreased from 53% to 44%, his press service said.

Sooronbay Jeenbekov stressed all foreign loans should be used as rationally as possible, for projects with the fastest effect, such as clean water supply, irrigation projects.

He noted that according to the average estimates, over KGS 23 billion, or $335 million, will be spent annually on external debt service in the next 10 years. The peak of payments will take place in 2025-2029.

"All countries take loans, cooperate with international financial institutions. Our country also has taken foreign loans since the first years of independence. The matter is different. How could we use them? We will have to pay back the loans we took earlier. We have obligations, we will fulfill them all. I want to emphasize that no land or subsoil has been or will be given away," Jeenbekov said.

The Kyrgyz leader noted soft loans are attracted for a long period, with a predominance of grant elements, which are directed to such priority sectors as energy, road infrastructure, projects to provide clean water, irrigation, processing and agriculture.

The head of state added that it is impossible to achieve economic development without attracting long-term loans and investments.

"There is need to build factories and plants, improve infrastructure and develop tourism to increase the share of GDP per capita. We must attract investments, create conditions for investors, and use foreign loans rationally and efficiently," President Jeenbekov emphasized.

Jeenbekov’s meeting with residents of Ysyk-Ata region took place yesterday, Feb.6 as part of his working trip to Chui Oblast of the country.