The creditor-states decided to write off $124 million of Kyrgyzstan's debt and to restructure the remaining $431 million.
The restructuring conditions are the following: the sum of commercial credits will be reduced by 50%, the remaining 50% will be repaid over 23 years, seven of which will be beneficial, the Finance Ministry said.
Credits granted within the framework of the official development assistance will be repaid throughout 40 years, 13 of which will have beneficial rates.
Creditors highly assessed the economic indices of the republic in 2001-2004. The agreement to write off the debt was achieved after the International Monetary Fund's approval of the conditions of the implementation of Kyrgyzstan's program to reduce poverty and promote economic growth.
The restructuring will have a positive influence on Kyrgyzstan's economy, the Finance Ministry said.
The government intends to achieve similar restructuring conditions with other creditors.
On Friday the secretariat of the Paris Club officially reported on partial write-off of Kyrgyzstan's debt. The foreign debt of Kyrgyzstan is $1,920 million. The Paris Club accounts for $555 million.
