Russia has written off Kyrgyzstan's debt of 240 million USD

Russian Prime Minister Dmitry Medvedev signed an order that approved a one-time write-off of Kyrgyzstan’s debt to Russia in the amount of $240 million, according to information published on the official website containing legal information.

“As of March 30, 2017, the amount owed by the Kyrgyz side to the Russian side … is $240 million ... 100% of the amount owed by the Kyrgyz side to the Russian side … is liable to a one-time write-off, effective as soon as this order goes into effect,” the report said.

This write-off is made as part of Russia's official program to assist with development in Kyrgyzstan.

In 2012, Moscow and Bishkek signed an intergovernmental agreement for a loan in the amount of about $500 million. The agreement provides for the complete cancellation of one part of the debt - $188.9 million - on the day the agreement goes into effect, as well as a ten-year amortization of $300 million, the second part of the debt, starting in March 2016.

The head of the state debt department of the Ministry of Finance of the republic, Bakyt Sydykov, told the Kyrgyzstan news agency Sputnik in April that $60 million had already been written off of the $300, and Kyrgyzstan is counting on Russia for a one-time write off of the remaining debt of $240 million.

  Russia, Kyrgyzstan, debt