Kazakhstan prepares for budget deficit, plans to borrow from China

Kazakhstan’s state budget deficit will reach $10.2 billion next year, forcing the government to borrow from domestic and international markets. According to Finance Minister Madi Takiev, the country will borrow up to $2 billion abroad, focusing mainly on China.

«We are raising these funds through both domestic and foreign markets. Given current external market conditions, we could secure approximately $1.5 to $2 billion abroad. We are focusing on China. This year, we issued $1.5 billion in Panda bonds at a rate of 1.82% — a figure below the inflation rate. Servicing this debt costs us $28.1 million, which is less than if we had borrowed domestically,» he said during a briefing after a Kurultai meeting.

According to Takiev, Kazakhstan is seeking the most balanced borrowing terms, and China is currently offering the most advantageous conditions. As a result, the country plans to issue Panda bonds and potentially dollar-denominated Eurobonds next year.

Although the specific amount of external borrowing has yet to be determined, the total volume of loans won’t exceed 4.6 trillion tenge or $10.2 billion.

In May 2026, Kazakhstan’s Ministry of Finance raised 3.4 billion yuan, carrying out its debut issuance of yuan-denominated Panda bonds in China. A second issuance of 6.6 billion yuan took place in September. It consisted of two tranches: three-year bonds with an annual yield of 1.82% totaling 5 billion yuan, and five-year bonds with an annual yield of 1.95% totaling 1.6 billion yuan.