OLD DEBTS POSTPONED AND NEW CREDITS GRANTED FOR KYRGYZSTAN.

Payment of Kyrgyzstan’s debt to Russia, totaling $132.8 million, has been deferred to 2000-2009. The debt is be repaid in rubles, hard currency, exports of goods, or by the transfer of ownership rights over Kyrgyz assets to Russia. This debt is the result of loans granted by Russia to Kyrgyzstan since 1992. Between 1992 and the first half of 1993, credits were granted by the Russian Central Bank within the framework of the ruble area, and no clear terms of repayment were agreed upon. After the consolidation of these credits in mid-1993, redenominating their value in dollars and determining the terms and conditions of repayment, the provision of finance was done through state credits. These specified concrete terms of repayment, with variable interest rates, and were nominated in dollars. At the same time, Russia began to tie credits to the purchase of specific Russian goods, a practice which has continued. Thus, next year Kyrgyzstan will receive a $12 million credit from Russia for the restructuring of its energy sector. The credit is earmarked for the purchase of Russian equipment, with delivery to begin in 1997. Another $8 million has been assigned to the light industry and transport sectors. (Interfax, November 21)

Russia was a crucial source of finance for Kyrgyzstan and other states of the former Soviet Union after they achieved their independence. However, a subsequent reduction of Russian loans to the region, as well as the increasing use of financial resources from Western countries and multilateral organizations, has diminished the importance of Russian credits. During a recent meeting of representatives of Central Asian and donor countries in Japan, Kyrgyzstan was offered $540 million in financial assistance. (Itar-Tass, November 1) Yesterday it was made public that Kyrgyzstan will receive a new long-term, low-interest $40 million credit from the Asian Bank of Reconstruction and Development to support the reform of industrial enterprises. (Interfax, November 21)

U.S.-Kazakh Meeting Maps Out Bilateral Cooperation.