Kazakhstan's Foreign Debt Breaks Historical Peak, Fears of Unmanageable Debt
(Image caption: National Bank of Kazakhstan.)
Kazakhstan's foreign debt has broken a historical peak and may fall into an unmanageable situation. This was reported by the website of the Kazakhstani Socialist Party.
The media pointed out that experts are concerned about whether Kazakhstan can effectively manage the growing national debt.
After the Prime Minister of Kazakhstan, Olzhas Bektenov, made an optimistic statement, it is necessary to pay attention to some potential risk factors. The country's national debt has reached its highest level in history.
According to data from the National Bank of Kazakhstan (Национальный банк), also known as "Kazakhstan Central Bank," the country's foreign debt reached 172.8 billion U.S. dollars in the first half of this year, setting a new record high. Compared to the previous year, this figure increased by 3.6%, and the ratio of foreign debt to gross domestic product (ВВП) reached 59.2%.
A report released by Halyk Finance stated that the growth of national debt mainly stems from the increase in government and quasi-government sector debt. In the past year, the debt of these two sectors increased by 8%, while private sector debt only increased by 2%.
The report also emphasized that despite this, the main debtors are still private enterprises, with their debt accounting for as much as 71%.
Notably, internal loans provided by foreign parent companies to Kazakhstani subsidiaries play a significant role. These loans account for 53.6% of Kazakhstan's total foreign debt, of which approximately 80% flows into the oil and gas industry.
With its own reserves, Kazakhstan currently maintains economic stability. As of mid-2025, the total assets of the Kazakhstan National Fund (Национальный фонд) and the international reserves of the Kazakhstan Central Bank together amount to 112 billion U.S. dollars, accounting for 38% of the country's gross domestic product.
Although current reserves are sufficient to fully cover the national debt, experts warn that the continuous expansion of the debt may limit the government's ability to support economic development through the budget in the future.
Kazakhstan's Finance Minister Madin Takyev announced plans to raise an additional 2.4 trillion tenge (the currency unit of Kazakhstan) in funding over the next three years. This measure could lead to the national debt of Kazakhstan doubling by 2028, reaching 5.7 trillion tenge.
However, Prime Minister Bektenov assured members of parliament that the current national debt is at a "relatively acceptable level."
Original article: https://www.toutiao.com/article/7576592416468124187/
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