Russia will write off Kyrgyzstan’s debt of $240 million

The Russian government plans to write off Kyrgyzstan’s debt of $240 million, reports “Interfax” with reference to the draft Protocol to the intergovernmental agreement. The document notes that the cancellation of the debt is held by Russia in the framework of “official development assistance to the Kyrgyz Republic.”

In 2013 in Russia, a special law was ratified the agreement on the settlement of debt of Kyrgyzstan, which was in full debt in the amount of $188,9 million

After that Kyrgyzstan owes Russia another $300 million This debt then decided to write off in parts, and it is for $30 million a year. At first, the remaining amount of the debt was accrued and was to be paid interest, but from mid-March 2016, the accrual of interest stopped.

To date, of $300 million debt written off $60 million At the end of April 2017, the head of the state debt of the Ministry of Finance of Kyrgyzstan Bakyt Sydykov announced the launch of negotiations on a one-time write off of the remaining amount.

“The parties agreed to revise the mechanism of debt: is the annual write-off is fulfilled, the agreement one-time. Thus, it is expected that the whole debt will be zero,” — said the head of the Kyrgyz Ministry of Finance.

The draft Protocol is emphasized that after the signing and entry into force of the Protocol 100% of the remaining amount will be charged.

In early April 2016, Russian President Vladimir Putin has approved a law to write off Uzbekistan’s debt amounting to $865 million Before it was written off the debts of Mongolia ($170 million), Afghanistan ($12 billion), Libya ($4.5 billion) and number of other countries.