As of July 1, Tajikistan’s public debt has amounted to 3.8 billion U.S. dollars, which is equal to 44.6 percent of the country’s gross domestic product (GDP), Tajik Finance Minister Faiziddin Qahhorzoda told reporters in Dushanbe on August 2.
Public debt can be raised both externally and internally, where external debt is the debt owed to lenders outside the country and internal debt represents the government's obligations to domestic lenders.
According to the minister, the external debt accounts for 87 percent (3.3 billion U.S. dollars) of the public debt and the internal debt accounts for 13 percent (500 million U.S. dollars).
“In January-June, 151.1 million U.S. dollars have been directed to external debt servicing, including 77.4 million U.S. dollars directed at paying the principal debt and 37.7 million U.S. dollars at paying accrued interest,” Qahhorzoda said.
Recall, Tajikistan’s external debt last year increased by 300 million U.S. dollars, while its internal debt decreased by more than 200 million U.S. dollars.
Last year, the country’s external debt increased mainly due to the attraction of a US$189.5 million loan from the International Monetary Fund (IMF).
China remains the main creditor of Tajikistan — 1.2 billion U.S. dollars. Debts due to placement of government bonds (Eurobonds) in international financial markets amount to US$500 million. There are also comparatively large debts to the World Bank, Asian Development Bank, Islamic Development Bank and IMF.
Government bills issued for recapitalization of two troubled banks – Agroinvestbonk and Tojiksodirotbonk – reportedly account for more than 40 percent of the country’s internal debt.
Meanwhile, despite a considerable amount of debts accumulated, the Tajik government is not going to discontinue the practice of foreign borrowing, and is planning to borrow 453 million U.S. dollars during this year.
