03/05/17 – Russia Cancels Kyrgyz Debt

Russian Prime Minister Dmitry Medvedev approved a decree that cancelled $240mln of Kyrgyz debt. The debt itself was from a $2bln Russian loan made to Kyrgyzstan in 2009 which was designed to support the construction of the now stalled Kambar-Ata hydro-power station. This debt cancellation is the latest amount cancelled by the Kremlin which in 2013 cancelled $189mln. Although these cancellations will have little effect on the nation’s sovereign debt crisis which was $4.1bln at the end of 2016 according to the Kyrgyz Finance Minister, an increase on 2015 by $300mln. This is a worrying trend as although the Kyrgyz economy is growing, its debt dependence could have serious economic repercussions. 

Mikhail Klimentyev/RIA Novosti/Reuters

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