Turkiye forgives Kyrgyzstan’s foreign debt

Turkiye has forgiven Kyrgyzstan’s foreign debt amounting to $62.3 million in exchange for projects in the “green” economy sector, Fergana News reports, citing Tazabek.kg.  Meanwhile, according to 24.kg, the forgiven amount is US$58.9 million.Kyrgyz President Sadyr Japarov reportedly announced this after talks with his Turkish counterpart, Recep Tayyip Erdogan.  Erdogan arrived in Bishkek on November 4 on a state visit, also to participate in the 11th Summit of the Organization of Turkic States (OTS), which was held on November 6.  The day after his arrival, Erdogan held discussions with Japarov.“I would like to express my gratitude to President Erdogan for the decision to forgive Kyrgyzstan's foreign debt to Turkey,” Japarov said at a press conference following their talks.The Kyrgyz leader has repeatedly proposed that other countries and financial institutions forgive the republic's foreign debt in exchange for participation in the construction of energy facilities and hydroelectric power plants in Kyrgyzstan.“It would be beneficial if the funds allocated for repaying the foreign debt could be directed toward supporting green initiatives.  We are not suggesting that only donors and partners finance these projects; we are also prepared to contribute,” Japarov said.In January 2023, Kyrgyzstan’s Ministry of Foreign Affairs presented Japarov’s debt-for-green-projects proposal to Turkish MPs.  The sides reportedly agreed to implement joint projects in the fields of economy and healthcare, including the expedited establishment of a Kyrgyz-Turkish Development Fund.Notably, this is not the first time Turkey has forgiven Kyrgyzstan’s debt.  In 2011, Ankara canceled US$51 million in foreign debt that Kyrgyzstan had accumulated over the previous 15 years.  According to Kyrgyzstan’s Ministry of Finance, as of August 2024, the country’s total foreign debt amounted to US$4.6 billion.