Kyrgyz government should reduc public debt from 68% to below 60% of GDP by 2025

AKIPRESS.COM - In the medium term, the main challenge for government of Kyrgyzstan is to steadily reduce public debt while creating fiscal space for development needs, according to the IMF statement following a remote mission from March 12 to March 30 in the context of the 2021 Article IV consultation with the Kyrgyz Republic.
At 68 percent of GDP, public debt leaves little room for fiscal policy to respond to future downturns.
The mission recommends anchoring fiscal policy to the goal of reducing public debt to below 60 percent of GDP by 2025.
This is still considerably higher than the pre-crisis 51.6 percent of GDP but would provide additional fiscal buffers.
To achieve this target, consolidation measures of about 1 percent of GDP would be needed if taken in 2022 to reduce the overall fiscal deficit to about 3 percent.