The paper analyses the total public debt of the Kyrgyz Republic in terms of solvency criterion. The recent development of total public debt to GDP ratios, as well as sharp increase of fiscal deficit, increases the attention of international investors to the issue of total public debt sustainability of the Kyrgyz Republic. Different methodologies in order to assess whether the country satisfies solvency criterion of the sustainability was implemented including the debt stabilizing primary balance over/under-borrowing test and the stress test. The main finding of the paper is that the total public debt to GDP ratio in the Kyrgyz Republic is under the moderate risk of debt distress.
Working paper info
Total Public Debt Sustainability: Empirical Assessment of the Solvency Issue in the Case of the Kyrgyz Republic
C. Macro, financial markets and open macroeconomy