Kazakhstan's public debt hits 38.5 trillion tenge, finance minister explains strategy

Kazakhstan's public debt has reached 38.5 trillion tenge, or 20.9% of GDP, Finance Minister Madi Takiyev said at a session of the Kurultai, where lawmakers were discussing the draft budget for 2027–2029. External debt accounts for 8.4 trillion tenge, or 4.5% of GDP.

Takiyev said the government is refinancing earlier loans by raising new funds on more favourable terms. As an example, he cited a loan from China this year: 1.5 billion dollars at 1.82% a year, with annual servicing costs of 12.7 billion tenge. Borrowing the same sum on the domestic market would cost more than 113 billion tenge a year.

Takiyev also referred to Kazakh Eurobond placements, made at 5.5% in 2015 and 4.4% last year, which he said save about 60 million dollars annually. He stated that the debt limit is 32% of GDP, that the country complies with legal restrictions, and that international experts view its debt burden as low.