China, being the largest creditor of Kyrgyzstan, the only one which made our country to refuse the sovereign immunity in the courts, the deputy Aida Ismailova (Respublika – Ata Jurt) said today at a meeting of the Parliament.
As she reported, on the results of 2016, China became the largest creditor of the Kyrgyz Republic.
“Today, the debt to the Chinese “Eximbank” amounts to $1, 444 billion, despite the fact that the total external debt of the Kyrgyz Republic is $3, 763 billion. For comparison, the republic owes ADB (Asian Development Bank) $576 million, the World Bank – $636 million, and Japan – $265 million,” Aida Ismailova noted.
At the same time, she noted that “almost all the credits of Eximbank are directed to financing of only two areas: transportation (roads) and energy.” “In this case, in contrast to the traditional multilateral donors, China puts more stringent financial conditions. I checked some of the agreements, and all of them contain Article 8, which reads as follows: “The Borrower hereby irrevocably waives any immunity on the basis of sovereign immunity or for any other reason, for themselves or their property in connection with any arbitration proceedings.” That is, it turns out that in the event of any litigation, we abandoned the opportunity to fight and will give China anything it considers necessary?” Aida Ismailova wondered and stressed that “no credit agreements of the Kyrgyz Republic with other multilateral donors have such an item.”
The MP recalled that under the presidency of Kurmanbek Bakiyev the issue of Chinese investment in return for the resources of the Kyrgyz Republic was raised. “I hope after some time we won’t be forced to give China our deposits for nothing,” Aida Ismailova expressed concerns.
In this regard, she appealed to the Ministry of Finance, the Economy Ministry and the Foreign Affairs Ministry for clarification on this matter and to submit a percentage of donors of the KR on the external debt of the country.