Russia to write off Kyrgyzstan's $500-million debt

Russian President Vladimir Putin arrived in the Kyrgyz capital Bishkek for an official visit. It is expected that the Russian leader will sign an agreement to extend the lease term for Russian army bases. In addition, Putin plans to write off Kyrgyzstan's $500-million debt to Moscow.

Earlier, Russian presidential aide Yury Ushakov said that the army bases agreement would come into force in 2017. The agreement will be concluded for 15 years; it will be renewable every five years, Utro.ru said.

As for Kyrgyzstan's debt settlement to Russia, the draft agreement on the issue stipulates the revision of repayment conditions and debt service procedures in the amount of $500 million, writes BBCRussian.com.

When asked whether the document means that Moscow forgives the debt to Bishkek, Ushakov said: "Yes, but it was all considered in the complex of other issues, including the development of the full range of cooperation with Kyrgyzstan."

The agenda of the talks also includes topics about the strengthening of cooperation in the humanitarian sphere, particularly in the area of ​​education and personnel training, as well as in science and culture.

It is worthy of note that Russia and North Korea have come to an agreement on the North Korean debt of $11 billion. The details of the agreement have not been disclosed, although experts believe that Russia will write off about 90 percent of the debt.