EU provides budget support to Kyrgyzstan
By Aynur Karimova
The European Commission has disbursed grants worth €10 million to Kyrgyzstan as part of EU Macro-Financial Assistance for the country.
"This amount is part of the first tranche of the €30 million MFA program, which the EU approved in October 2013. This MFA takes the form of a €15 million grant and a €15 million medium-term loan," EU said.
On May 22, the European Commission approved the distribution of €5 million of the first tranche, which will also be released shortly.
"The objective of this assistance is to support the restoration of a sustainable external financial situation for Kyrgyzstan, to alleviate its balance of payments needs and thereby support its economic and social development," EU said.
The €30 million comes in addition to a €184 million non-reimbursable bilateral aid package granted to Kyrgyzstan for the period 2014-2020.
Kyrgyzstan also receives substantial amounts of EU aid particularly in the fields of border management, combating drug trafficking, energy, transport, and higher education.
"The EU’s macro-financial assistance should support Kyrgyzstan's commitment to values shared with the Union, including democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as its commitment to the principles of open, rule-based and fair trade," EU said, adding that its macro-financial assistance should complement the programs and resources provided by the IMF and the World Bank.
In his remarks Pierre Moscovici, the Commissioner of Economic and Financial Affairs, Taxations and Customs, said that the EU remains committed to support Kyrgyzstan’s efforts to stabilize its young parliamentary democracy and to help the role of civil society organizations in the reform process.
"With Macro-Financial Assistance, we help Kyrgyzstan to maintain macroeconomic stability and create more sustainable growth. At the same time, the EU will continue its political dialogue with the Kyrgyz authorities at all levels, including on the need to respect human rights and fundamental freedoms," he noted.
A source in Kyrgyzstan's Finance Ministry told local media that this particular aid package is designed for budget support.
"We can not say exactly what the expenditures this money will be spent for. All depends on the current economic situation," the source noted.
Bilateral relations between Kyrgyzstan and the EU have been based on a Partnership and Cooperation Agreement since 1999.
The EU and Kyrgyzstan also cooperate within a regional framework, which includes all five Central Asian republics, entitled the EU and Central Asia Strategy for a New Partnership (2007).
Technical and financial support to Kyrgyzstan is provided through the EU's Development Cooperation Instrument. The EU is currently working on a new DCI program for 2014-2020.
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Aynur Karimova is AzerNews’ staff journalist, follow her on
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