The Ministry of Finance plans to develop the country’s equity in order to stabilize the ratio between Tajikistan’s external debt and its gross domestic product (GDP).
“Growth rate of the economy of Tajikistan and stability of its financial system essentially depend on external factors. Jumps in “mood” of the global financial system, instable economic situation in major trading partners of Tajikistan, slump in the international prices for energy carriers and a number of domestic factors have negatively impacted the country’s economy, leading to decrease in investment flows, fall in remittances, decrease in foreign currency proceeds from exports, and considerable devaluation of the national currency,” says the Ministry of Finance report on Tajikistan external debt situation in 2016.
The unfavorable financial and economic situation has affected the external debt situation of the country. The country’s external debt-to-GDP ratio by 4.8% YoY in 2016, reaching 32.7%.
Tajikistan’s external debt reportedly grew by $168 million YoY in 2016, reaching $2.2741 billion.
The national budget last year allocated $158 million for the external debt service, including $125 million for principal debt payments and $33 million for debt interest payments.
Meanwhile, China remains Tajikistan’s largest creditor. According to some data, Tajikistan now owes almost $1.2 billion to China. (News.tj/Business World Magazine)