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Kyrgyzstan Review, 10 years ago

[27.06.2OO2] The State Duma of the Russian Federation ratified the intergovernmental agreement on settlement of Kyrgyzstan debts to Russia

On June 27, 2002 the Gosduma (Parliament) of Russia ratified the agreement between the governments of the Russian Federation and the Kyrgyz Republic about settlement of Kyrgyzstan debts to the Russian Federation. The agreement was signed on July 6, 2001 in Moscow and provides settlement of a part of Kyrgyzstan debts to Russia in the amount of $59.34 million.
This agreement settles debts on back payments, the basic duty and rates of interests on the given state credits for April 1, 2001 ($32.96 million); debts on payments on the basic duty, subject to repayment, since April 2, 2001 to December 31, 2002 ($24.81 million USD).
Besides them the debts on the interests subject to payment from April 2, till May 20, 2001 ($1.57 million USD) will be settled. Repayment of the debts will be made within 15 years, including the two-year-old grace period by equal semi-annual shares. Since April 1, 2001 for the sum of debts will be charged interests on the rate of 5 % annual every 6 months which will be paid in US dollars each year on April 1 and October 1. This agreement stipulates processing debts in the bill form by transfer to Russia of 25 bills of the Kyrgyzstan's Ministry of Finance, equal on a face-value, with semi-annual terms of repayment, since April 1, 2003 on April 1, 2015.
According to the conditions of the agreement the Russia has the right to yield bills of the Ministry of Finance of Kyrgyzstan to the third sides, and also can demand repayment for using privatization of the state property of Kyrgyzstan.
AK&M News Agency, June 27, 2002

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