In a report released at a news conference in Dushanbe, Minister of Finance Faiziddin Qahhorzoda revealed on July 29 that Tajikistan’s external debt has risen 170 million U.S. dollars (USD) in six months to July, 2020, reaching 3.1 billion USD.
China remains Tajikistan’s largest creditor. As of July 1, 2020, Tajikistan owes more than 1 billion USD to the Export-Import Bank of China (China Eximbank), the minister said
Besides, Tajikistan reportedly has relatively large debts to the World Bank (338.5 million USD), the Asian Development Bank (287.3 million USD) and the Islamic Development Bank (131.9 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.
Qahhorzoda added that 16 new loan and grant agreements in a total amount of 587.2 million USD had been signed over the first six months of this for implementation of 112 national investment projects.
A totaled reportedly includes 361.2 million USD of grants, 220 million USD of loans and 6 million USD of Tajik government’s contribution.
Speaking to reporters in Dushanbe on February 14, Qahhorzoda noted that external debt to gross domestic product (GDP) ratio in Tajikistan was 35.8 percent as of January 1, 2020.
On the amount of the external debt, Qahhorzoda noted that “the Ministry of Finance complies with the International Monetary Fund (IMF)’s recommendations.”
“All our wok on attracting foreign borrowings will be based on the foreign borrowing management strategy,” said the minister said. “We will try not to go beyond the IMF recommendations.”
In accordance with the national foreign-borrowing program, which has been adopted by the parliament last year, 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.
