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Wednesday, June 28, 2017

Kyrgyz Republic uses bulk of budget to service external debt, capital investments

The Ministry of Finance of the Kyrgyz Republic recently said that the bulk of the national budget this year has been used to service external debt and capital investments.

The government spent $4,871,160 to service the country's foreign debt, including interest payments, while various departments directed a total of $1,230,000 toward capital expenditures.

In the Heritage Foundation's 2013 Index of Economic Freedom, Kyrzgystan scored a 59.6, making its economy the 89th freest on the list. Its score was 0.6 point worse than 2012, with significant declines in the control of public spending and investment freedom.

Challenges going forward include high levels of external debt, heavy dependence on foreign aid, a thriving black market, crime, endemic corruption, poor inter-ethnic relations, Islamist radicalism and drug smuggling, according to the report.