Russia could offer emergency aid to Kyrgyzstan

Kyrgyzstan's economy is in crisis and the small, impoverished former Soviet republic has been holding talks with Moscow on financial assistance.

Russia could offer emergency aid to Kyrgyzstan

Russia could offer hundreds of millions of dollars in emergency aid to Kyrgyzstan on Tuesday.

A Kremlin source said Kyrgyz President Kurmanbek Bakiyev had a good chance of securing financial aid during a visit to Moscow for talks with Russian President Dmitry Medvedev.

Kyrgyzstan's economy is in crisis and the small, impoverished former Soviet republic has been holding talks with Moscow on financial assistance.

"Drafts of inter-government agreements have been prepared under which Russia will offer Kyrgyzstan major credit resources to stabilise the budget and develop key infrastructure sites," the Kremlin source told Reuters. He gave no details.

Russian newspaper Kommersant said Russia could offer a $300-million credit for 40 years at a symbolic annual interest rate of 0.75 percent, provide a non-refundable $150-million grant and write off $180 million of Kyrgyz debt, it said.

"For a small state with an annual budget of around $1 billion such a volume of direct financial aid is unprecedented," Kommersant said.

The Kremlin source said military cooperation in Central Asia would also be on the agenda but made no mention of a U.S. air base near the Kyrgyz capital Bishkek which Kommersant said Moscow wanted closed.

The Manas airbase was set up with Russia's blessing in 2001, when Kyrgyzstan became a transit point for NATO supplies to troops in Afghanistan, and is an important source of funds for the Kyrgyz budget.

But relations between Moscow and the NATO military alliance have since deteriorated and hit a low after Russia, which also has a military base in Kyrgyzstan, fought a brief war in Georgia last August.

Kommersant said Bakiyev could announce a commitment to close the U.S. base, a decision that could be an irritant in Russian relations with new U.S. President Barack Obama.

Despite Kommersant's report, a Bakiyev aide said no announcements on the U.S. base were expected. "We have not made any announcements on this (U.S. airbase) and we have no plans to do so," Daniyar Usenov, head of Bakiyev's administration, told reporters in Bishkek.

A senior NATO official said during a visit to Kyrgyzstan on Monday that any decision to close the U.S. airbase, home to more than 1,000 military personnel, would be regrettable.

Many Kyrgyz have had mixed feelings about the presence of U.S. troops in their homeland since 2006 when a U.S. airman shot dead a Kyrgyz man in an incident at the base.

Reuters
Last Mod: 03 Şubat 2009, 11:14
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