The country is protected from economic shocks with a reserve of 8.3 billion dollars
In an interview with Bloomberg, the Chairman of the National Bank of Kyrgyzstan, Melis Turgunbaev, announced the sale of Eurobonds worth 700 million dollars as part of the first integration into the market in 2025.
Turgunbaev also discussed the current economic situation in the republic, noting that by the end of 2025, economic growth is expected to exceed 10%, which is a significant improvement compared to previous periods.
This year, the republic successfully attracted 700 million dollars through the first placement of government bonds, which are set to mature in June 2030. These bonds have demonstrated outstanding results among dollar-denominated obligations of developing countries, reaching their highest level since their issuance in May.
Kyrgyzstan aims to establish itself as a new "tiger economy" of Central Asia, leveraging growing interest in re-export, remittances, and tourism to attract foreign investment, Turgunbaev emphasized.
He highlighted major infrastructure projects, such as the construction of the China-Kyrgyzstan-Uzbekistan railway and the "Kambar-Ata-1" hydropower plant on the Naryn River, with a total cost of 10 billion dollars. These initiatives contribute to economic growth and attract foreign investments.
According to Turgunbaev, the new railway will significantly enhance Kyrgyzstan's logistics capabilities, while the power plant will allow the republic to become a net exporter of electricity.
Russia and China remain Kyrgyzstan's main trading partners. From January to September, remittances from migrants to the country increased by 16.4%, totaling 2.6 billion dollars, of which nearly 93% came from Russia. At the same time, outgoing remittances from Kyrgyzstan during the same period reached 300 million dollars, which is 13.1% less compared to last year.
Goods from China often pass through Kyrgyzstan to the Russian market, as the republic is part of the Customs Union led by Moscow, along with Kazakhstan.
Despite these achievements, there are certain challenges.
Given the international situation, in November, the National Bank was forced to raise the key interest rate by 100 basis points to 11%, as the price increase for imported goods from Russia exceeded 8%. The main reason for the acceleration of price growth was the rising cost of fuel, most of which comes from Russia.
Market difficulties are also linked to the fact that many Russian banks have faced restrictions, complicating transaction processing.
Nevertheless, Kyrgyzstan's economy is currently protected from economic shocks thanks to gold reserves, which reached a record 8.3 billion dollars as of December 1, accounting for approximately 70% of the total volume. By the end of the third quarter, the reserves of the precious metal amounted to 40.7 tons (1.3 million troy ounces).
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