The IMF recommended the Kyrgyz Cabinet of Ministers to restrict foreign loans on the economy and social development

Almaty. May 15. Silkroadnews - The International Monetary Fund (IMF) advised the government of Kyrgyzstan to develop medium-term debt management strategy, which includes a number of restrictions on foreign loans, reported KyrTAG with reerence to the permanent representative of IMF in Kyrgyzstan Edward Gemayl.
The document is intended to maintain the level of debt at a sustainable level.
"This strategy will limit the receipt of external loans for projects aimed at strengthening economic growth and social development. Also, the document assumes that any external borrowing will meet medium-term fiscal environment in the country and will not affect the macroeconomic stability", - said E.Gemayl.
The IMF also announced several other recommendations to the authorities on the country's external debt management. In particular, to suspend in 2015 fiscal consolidation for the sake of minimizing economic shocks, to monitor and avoid double-digit inflation, set the hard discount rate.
"At the moment, the external debt of Kyrgyzstan is stable, but the authorities need to maintain this position", - said the IMF Resident Representative.
As noted, the public debt of Kyrgyzstan is $3 billion 647 million. 94% of the debt, or $3 billion 427 million is a component of the external debt of the republic, and this figure is equal to 54% of GDP.
The largest loans are allocated by China, the World Bank, Russia and Arab countries for the implementation of infrastructure projects in Kyrgyzstan.