Kazakhstan's external debt has reached a record high and may become unaffordable

Kazakhstan's external debt has reached a record high and may become unaffordable. This is reported by the portal "Socialist Party of Kazakhstan".

According to the publication, experts express concern about Kazakhstan's ability to effectively manage the growing volume of public debt.

After the positive statements of the country's Prime Minister Olzhas Bektenov, it is important to note some risk factors. The country's public debt has reached a record level in its entire history.

According to the National Bank, Kazakhstan's external debt in the first half of this year amounted to $ 172.8 billion, setting a new record. In annual terms, this indicator increased by 3.6%, and the debt-to-GDP ratio reached 59.2%.

The analytical review of Halyk Finance notes that the growth of public debt is mainly due to an increase in public and quasi-public sector debt. Over the year, their debt increased by 8%, while private sector debt increased by only 2%.

The review emphasizes that despite this, the lion's share of debt still falls on private enterprises, which account for 71%.

Intra-company loans provided by foreign parent companies to their Kazakhstan subsidiaries play an important role. These loans account for 53.6% of the country's total external debt, and about 80% of them are directed to the oil and gas industry.

Kazakhstan demonstrates sustainability due to its reserves. By mid-2025, the total assets of the National Fund and the international reserves of the National Bank have reached $112 billion, which is 38% of the country's gross domestic product.

Despite the fact that current reserves fully cover the national debt, experts warn that an increase in debt may limit the budget's ability to support the economy in the future.

Finance Minister Madi Takiyev announced his intention to attract an additional 24 trillion tenge over the next three years. This could lead to a doubling of the public debt by 2028, which will reach 57 trillion tenge.

Prime Minister Bektenov assured the deputies that the national debt is at a relatively acceptable level.