Germany to provide Kyrgyzstan with grant for economy development

By Abdul Kerimkhanov

Germany will provide Kyrgyzstan with a grant of 40.1 million euros for the development of the country's economy, stated the Minister of Economy of Kyrgyzstan Oleg Pankratov at a meeting of the Zhogorku Kenesh on February 21.

“The German government is ready to provide a grant in the amount of 40.1 million euros for bilateral technical and financial cooperation to Kyrgyzstan. Of these, 21.1 million euros is provided for technical cooperation projects,” the minister said.

As he noted, 70 enterprises will be created within the framework of the projects, five of which will work on the green economy principles.

Pankratov added that the funds will also be directed to support agriculture and healthcare.

Diplomatic relations between Germany and Kyrgyzstan were established on February 3, 1992. The German Embassy in Kyrgyzstan was opened in September 1992, and the Kyrgyz Embassy in Germany - in January 1995.

The volume of mutual trade of Kyrgyzstan and Germany amounted to $ 52.92 million, or 1.2 percent of the Kyrgyz total volume of trade in January-August 2018.

Germany’s principal exports to Kyrgyzstan are motor vehicles, machinery and chemical products (pharmaceuticals and cosmetics). Kyrgyzstan’s main exports to Germany are agricultural products.

The volume of direct foreign investment from Germany to Kyrgyzstan totaled to $ 8.13 million in January-June 2018. The main part of direct investment from Germany was in manufacturing industry - $ 7.2 million, in trade - $ 576,300, in agriculture - $ 297,200.

As many as 152 Kyrgyz-German joint ventures operate in Kyrgyzstan.

Kyrgyz-German companies operate in various sectors of the economy such as trade, industry, tourism, energy, services, and others.

Germany after the U.S. and Japan is one of the largest donors in Kyrgyzstan, providing bilateral support.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94 

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