Baku, Azerbaijan, April 16
By Ali Mustafayev – Trend:
Kyrgyzstan might have some difficulties in paying its external debt to China, which may be due to unfavorable terms for Kyrgyzstan, as compared to China, regarding the relevant loan agreement, Kyrgyz MP Akylbek Japarov said at a meeting of the parliamentary committee on budget and finance, Kyrgyz media reported.
"In five years Kyrgyzstan must pay off a $320 million debt to China," Japarov said, adding that Kyrgyzstan's interests were not protected, when drafting an agreement with the Export-Import Bank of China.
He stressed that the terms of repayment of loans are very short.
“The reason is that the minister of transport and other ministers visit China and discuss the terms of the loan agreements, and minister of finance joins in only when the document is being signed. The agreements note that disputes (between Kyrgyzstan and China) will be considered only in the arbitration court in Hong Kong, and all aspects of the case will be interpreted only in accordance with the laws of China,"Japarov said.
According to the Ministry of Finance of Kyrgyzstan, the timing of payment of Chinese loans will amount to 5 -25 years. The total amount of Kyrgyzstan’s debt to China, in turn, amounts to $1.7 billion.