Of the total debt, approximately $4.5 billion is external, while the remaining $2 billion is internal. Baketayev explained that internal loans are secured at an annual interest rate of 12-14%, while external loans are obtained at a lower rate of 2%.
The minister justified the shift towards higher-interest internal loans, citing the volatility of foreign currencies used for external debts. “When considering both the exchange rate and interest rate, external debt payments could potentially be higher. Additionally, repaying external loans requires purchasing foreign currency, which ultimately benefits the economies of other countries. By opting for domestic loans, we ensure that the money circulates within our own economy, benefiting banks, the Social Fund, and other entities,” Baketayev stated.
