Jeenbekov: It is necessary to carry out "deep" restructuring of external debt

Bishkek, May 28, 2020 / Kabar /. It is necessary to carry out a “deep” restructuring of external debt, including to multilateral creditors, President of Kyrgyzstan Sooronbay Jeenbekov made such a proposal to support countries in achieving the UN Sustainable Development Goals in the current situation speaking at the online High-Level Event on Financing for Development in the Era of COVID-19 and Beyond.

The second stage, the head of state proposed to develop a program for exchanging debt for projects in the field of healthcare, social support and food security, the President’s press service reported.

In addition, he emphasized the need to develop a program for the exchange of debt for projects in the field of ecology, climate change and the green economy.

“This is in line with six measures voiced by UN Secretary-General António Guterres in April this year. In case of support of our proposals, I suggest to develop and adopt an appropriate Roadmap within the UN,” the president said, adding that the current situation requires decisive measures and innovative approaches.

Jeenbekov emphasized that the coronavirus pandemic has ceased to be only a public health problem, it has a negative impact on the economic development of all countries, including the Kyrgyz Republic.

He noted that the protective measures taken to combat coronavirus, led to a sharp decrease in economic activity.

“Kyrgyzstan, as a mountainous country without access to the sea, has also faced a decline in foreign trade operations. By the end of this year, we expect a negative economic growth and significant fall in budget revenues. Lack of budget funds may lead to a deterioration in the social situation of the population,” he emphasized, adding that under these conditions the implementation of national development programs that are closely linked with the UN Sustainable Development Goals is at risk.

The President expressed gratitude to the UN system and other development partners for supporting Kyrgyzstan in this difficult time. He also thanked the G20 countries and the Paris Club for the initiative to suspend payments on the state debt for Kyrgyzstan.

The event is held in the form of a videoconference with the participation of the heads of foreign states, international organizations, financial institutions and the UN Secretary General Antonio Guterres.