Russia ratifies agreement with Kyrgyzstan on writing off debts
MOSCOW. May 8 (Interfax) - President Vladimir Putin has signed into law a bill ratifying an agreement with Kyrgyzstan writing off almost $500 million in loans extended by Russia to its partner.
The document posted on the official web portal of legal information says Putin had given instructions to ratify the agreement signed in Bishkek on September 20, 2012.
On April 27 the Federation Council ratified the agreement that implies the settlement of two Kyrgyz debts to Russia totaling almost $500 million.
The first debt amounts to $188.9 million. Earlier Russian Deputy Finance Minister Sergei Storchak explained that the sum represents the debt of Kyrgyzstan "related to the disbursement of technical credits in the 1990s." The funds were extended in non-denominated rubles and later converted into U.S. dollars. In compliance with the agreement this sum shall be written off fully on the day of the enforcement of the agreement. No interest shall be charged or paid.
The second debt in the amount of $300 million represents a government loan extended under a February 3, 2009 agreement. This indebtedness shall be written off in equal proportions over a period of ten years starting with March 16, 2016. The Kyrgyz side shall be paying interest on the remaining part of the indebtedness until March 15, 2015 after which no interest shall be charged or paid.
As at October 1, 2012 Kyrgyzstan had paid $55.1 million to Russia in relation to the two debts, an explanatory note to the law saws. The agreement has been temporarily applied as of the date of its signing and shall come into force as of the date of the receipt of the last written notification of completion of due national procedures.
