Tajikistan’ internal debt has risen 50 million somoni in nine months to September 30, 2019, reaching 6.9 billion somoni, according to the Ministry of Finance (MoF) Secretariat.
Meanwhile state borrowings in dollars have decreased over the same nine-month period from 750 million U.S. dollars to 715 million U.S. dollars.
Most likely, the reduction in state borrowings in dollars has resulted from increasing exchange rate of the dollar (USD) against the national currency, the somoni (TJS).
In January-September this year, the exchange rate of USD against TJS has risen 2.8 percent – from 1:9.4298 to 1:9.6960.
Government bills issued for recapitalization of two troubled banks (Tojiksodirotbonk and Agroinvestbonk) account for more than 40 percent of the country’s internal debt.
Meanwhile, the public debt has not changed this year, and according to data from the Ministry Finance, it amounts to 3.6 billion USD as of October 1, 2019, which is equal to 44.7 percent of the country’s gross domestic product (GDP).
As of October 1, 2019, Tajikistan’s external debt amounted to 2.9 billion USD. The country’s external debt-to-GDP ratio was 35.8 percent.
Internal debt or domestic debt is the part of the total government debt in a country that is owed to lenders within the country. Internal debt's complement is external debt. Commercial banks, other financial institutions etc. constitute the sources of funds for the internal debts
Internal public 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 finance not by creating it de novo, but by borrowing it. The money created is in the form of treasury securities or securities borrowed from the central bank.
Public debt, also known as government debt, public interest, national debt and sovereign debt, contrasts to the annual government budget deficit, which is a flow variable that equals the difference between government receipts and spending in a single year. The debt is a stock variable, measured at a specific point in time, and it is the accumulation of all prior deficits.
Public debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due.
Governments create debt by issuing government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.
