DUSHANBE, July 25, 2011, Asia-Plus — In a report released at a news conference in Dushanbe, Minister of Finance Safarali Najmiddinov revealed on July 25 that as of July 1, 2011, Tajikistan’s external debt amounted to 2.072 billion U.S. dollars.
“According to the preliminary data, the foreign debt now amounts to nearly 33 percent of the country’s gross domestic product (GDP),” he noted.
Over the first six months of this year, the external debt service has amounted to 42 million U.S. dollars, the minister said. US$16 million have been allocated for repayment of the principal and US$26 million have been allocated for repayment of the debt interest.
Long-term preferential loans from international financial institutions form the bulk of the country’s external debt.
Najmiddinov said the last loan (US$26 million) had been provided by China’s Exim Bank for construction of the “Khujand” substation. “It is a very important project that has allowed ensuring regular electricity supply to the northern Sughd province,” he added.
Meanwhile, Dr. Hojimuhammad Umarov, expert on the Tajik economy, considers that Tajikistan must refrain from further external borrowing because the external debt service causes huge damage to the socioeconomic situation of the country. “The Ministry of Finance is experiencing shortage of finance to service the country’s external debt, and therefore, they now ask external creditors to restructure the debts,” said Dr. Umarov, “However, as the result of restructuring the debts will continue rising and in the future, we will have to reduce social spending in order to repay increasing debts.”
