DUSHANBE, August 2, 2013, Asia-Plus — As of July 1, 2013, Tajikistan’s internal debt amounted to 2.745 billion somoni, which is 6.5 percent of the country’s gross domestic product (GDP), according to the Ministry of Finance (MoF).
Internal debt is the part of the total debt in a country that is owed to lenders within the country. Internal debt owed by a government (money a government borrows from its citizens) is part of the country”s national debt. It is a form of fiat creation of money, in which the government obtains cash not by printing it, but by borrowing it. The money created is in the form of treasury securities or securities borrowed from the central bank.
An official source at a MoF says this year’s national budget has earmarked 83,100 somoni for servicing the internal debt. Over the first six months of this year alone, 24,700 somoni have been spent to service the internal debt.
“Tajikistan’s internal debt portfolio includes not only emitted treasury securities, but also debt securities issued by the government in exchange for cotton farm debt obligations, Tajik central bank bonds, public premium bonds and central bank recapitalization bonds worth 280 million somoni that were issued in 2012,” the source said.
Current Tajikistan’s internal debt reportedly consists of the MoF treasury securities (the face value of one bond is 1,000 somoni) worth 153.7 million, public premium bonds — 10 million somoni, the MoF government securities (cotton farms) – 295.0489 million somoni, MoF treasury securities (the face value of one bond is one million somoni) – 280 million somoni, the MoF bonds for recapitalization of Agroinvestbonk – 500 million somoni (with payback period expiring in 2020) and 200 million somoni (with payback period expiring in 2017), and the MoF promissory bills – 1,305,702,500 somoni.
