The Government of Tajikistan plans to increase the country’s external debt from current 2.9 billion U.S. dollars to 3.5 billion U.S. dollars in 2022.
In accordance with the national foreign-borrowing program, which has been adopted by the parliament recently, the country’s external debt is expected to amount to 3.2 billion USD in 2020, 3.3 billion USD in 2021 and 3.5 billion USD in 2022.
This program is expected to help the government timely finance social projects, and thereby, provide development of priority sectors of the country’s economy.
It is planned to obtain loans for construction of the Obigarm-Nourobod highway (240 million USD), rehabilitation of the highway connecting Bokhtar (formerly Qurghon Teppa) and Danghara (60 million USD), rehabilitation of the Nurek hydroelectric power plant (50 million USD), rehabilitation of the Qairoqqum hydroelectric power plant (38 million USD), improvement of water resources management in Khatlon province (25 million USD), construction and rehabilitation of preschool facilities (35 million USD) and so forth.
According to the Ministry of Finance (MoF) Secretariat, Tajikistan’s external debt amounted to 2.9 billion USD as of October 1, 2019. The country’s external debt-to-GDP ratio was 35.8 percent.
China remains Tajikistan’s largest creditor. Tajikistan now reportedly owes more than 1.4 billion USD to the Export-Import Bank of China (China Eximbank).
Besides, Tajikistan has relatively large debts to the World Bank (310 million USD), the Asian Development Bank (270 million USD) and the Islamic Development Bank (129 million USD).
The issuance of a US$500 million Eurobond in September 2017 is also one of the primary drivers of the rise in Tajikistan’s external debt.
