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Debt treatment -
March 11, 2005

Supporting agreements with the international institutions

Arrangement under the Poverty Reduction and Growth Facility (PRGF) approved on February 23, 2005


Total external debt of the country

$1 920 million as of September 30, 2004

$555 million of which being due to Paris Club as of February 01, 2005

Amounts treated

$555 million of which $124 million being canceled, of which $431 million being rescheduled

Categories of debt treated

Treatment of arrears as of February 28, 2005

Treatment of the stock as of March 01, 2005

Repayment profile

Treatment under Ad Hoc terms (cancellation rate of 50% )

  • repayment of non ODA credits over 23 years , with 7 years of grace , after cancellation to a rate of 50%
  • repayment of ODA credits over 40 years with 13 years of grace

repayment profile

Specific provisions

Possibility to conduct debt swaps

On a voluntary and bilateral basis, the Government of each Participating Creditor Country or its appropriate institutions may sell or exchange, in the framework of debt for nature, debt for aid, debt for equity swaps or other local currency debt swaps: (i) all ODA loans, credits and consolidations; (ii) amounts of outstanding credits, loans and consolidations on debts mentioned in Article II-1, other than ODA loans, up to 20% of the amounts of outstanding credits as of December 6, 2001 or up to an amount of 5 million SDR, whichever is higher. Participating Creditor Countries and the Government of the Kyrgyz Republic shall inform semi-annually the Secretariat of the Paris Club, who shall inform other creditors, of the debt swaps agreements they have implemented. All elements necessary to evaluate this operation, its impact on the Kyrgyz Republic's economy and on the evolution of the creditor's exposure shall be transmitted to the Secretariat including: its nature and purpose; the parties to the debt swap; the amount, type and value of the debt treated; the price of sale to investors and the expense of the Government of the Kyrgyz Republic.

Payment of non-consolidated amounts before September 30, 2005

Comparability of treatment provision

In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of the Kyrgyz Republic commits to seek promptly from all its external creditors debt reorganisation arrangements on terms comparable to those set forth in these Agreed Minutes, while avoiding discrimination among different categories of creditors. Consequently, the Government of the Kyrgyz Republic commits to accord all categories of creditors -and in particular creditor countries not participating in these Agreed Minutes, and private creditors- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.

For the purpose of the comparison between the arrangements concluded by the Government of the Kyrgyz Republic with the creditors not listed in these Agreed Minutes and with the Participating Creditor Countries, all relevant elements shall be taken into account, including the real exposure of the creditor not listed in these Agreed Minutes, the level of cash payments received by those creditors as compared to their share in the Kyrgyz Republic's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Government of the Kyrgyz Republic and the creditors not listed in these Agreed Minutes.

Cut-off date

August 31, 2001

Organisation of the session

The meeting was chaired by Mr. Jean-Pierre Jouyet, Chairman of the Paris Club.

The head of the debtor country's delegation was Mr. Bolot E. Abildaev, Minister of Finance.


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