Germany will write off around 15 million euro of Kyrgyzstan’s debt

Almaty. April 29. Silkroadnews – The German Bundestag decided to write off Kyrgyzstan’s debt amounting to 14.9 million euro, the ambassador of the Federal Republic of Germany to Kyrgyzstan Peter Rudolf Scholz said, KyrTAG reports.

“The Development Bank of Germany wrote off 13.5-million-euro debt of Kyrgyzstan. If we take a look into the future, we would like to say the Bundestag of Germany has also made the decision regarding the Kyrgyz side’s request on further writing off the debt in the amount of 14.9 million euro within the next phase of the debt conversion,” he said.
According to him, the specific conditions for next steps of debt conversion, as well as details of the projects to be held under this agreement, can be discussed and agreed in the framework of intergovernmental consultations to be held in Bishkek in late May.

The ambassador also noted the total volume of bilateral technical and financial cooperation since the formal beginning of such cooperation in 1993 has reached the amount of more than 360 million euro.
As of March 31, 2016, the debt of Kyrgyzstan to Germany amounts to 86.3 million euro and taking into account the amount written off decreases to 13.5 million euro.

At present three conversion operations with the German government has been completed. The conversion provides for the funds for the external debt payment to remain in the country and be spent on development projects. The first phase of the conversion was implemented in 2006. Thus, 13.5 million euro that Kyrgyzstan had to return to Germany have been directed from the state budget for the construction of social facilities.