A law was signed to write off Kyrgyzstan’s debt to Russia in amount of $240 million

Almaty. December 11. Silkroadnews - President of the Kyrgyz Republic Sooronbai Jeenbekov signed the law “On ratification of the protocol to the agreement between the government of the Kyrgyz Republic and the government of the Russian Federation on settlement on earlier granted loans dated September 20, 2012, signed on June 20, 2017 in Moscow”, the Kyrgyz Telegraph Agency (KyrTAG) reports with reference to the press service of the head of the state.
The law was passed by the Jogorku Kenesh on November 2, 2017.
The purpose of the ratified protocol is to settle the debt of the Kyrgyz Republic to the Russian Federation on previously granted loans.
The agreement dated September 20, 2012 settled (by writing off) the debt of the Kyrgyz Republic to the Russian Federation for a total of $488.9 million.
On May 22, 2013, the Russian Federation made an actual writing-off of the debt in the amount of $188.9 million. The remaining amount of the written-off debt - $300 million, according to the agreement, was to be written off within 10 years from 2016 to 2025, at $30 million annually. $60 million was written off in 2016-2017.
As of April 30, 2017, the balance of the Kyrgyz Republic’s debt to the Russian Federation is $240.0 million.
The implementation of the protocol will allow early annulment of the current debt of the Kyrgyz Republic to the Russian Federation.
A one-time write-off of $240 million debt will reduce the level of the state’s external debt to GDP by 3.8% which would have a positive impact on the size of the republic’s state debt as a whole.
The law comes into force following the official publication.