Putin forgave the debts of Kyrgyzstan

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Vladimir Putin and Sooronbai, Geanakopolos: Alexei Nikolsky / RIA Novosti

The President of Russia Vladimir Putin ratified the Protocol to the agreement on the settlement of the state debt of Kirghizia in front of Russia. The document is available on the official Internet portal of legal information.

The agreement on decommissioning was signed in August 2017, the Finance Ministers of the two countries. Vladimir Putin asked the President of Kyrgyzstan Almazbek Atambayev during his visit to Russia. Ratification of the document actually means final cancellation of the old debt in the amount of $ 240 million, which agreed to restructure in 2012.

Then, the two countries agreed on new terms of debt payments in the amount of 488,9 million dollars. In may 2013, Russia forgave Kyrgyzstan 188,9 million dollars, and the balance due in the amount of 300 million had to be written off in stages up to 2025. While Kyrgyzstan has continued to pay interest on this loan, although the bulk of the debt was written off. By 2017 Kyrgyzstan has paid Russia of 7.98 million dollars of percent.

Kyrgyzstan asked Russia to write off debt as this would have significantly reduced the debt burden of the state to the country’s GDP. On the Russian debt accounted for 6.5 percent of the national debt of Kyrgyzstan, the write-off reduced the outstanding debt to GDP to the level of 60.6 per cent.

The paper noted that debt cancellation will not entail any negative consequences for Russia, because after 2016 there are no revenues on the debt was not provided.

Video, photo All from Russia.



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