- Report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2016, June 2017, p.8-9
- Commission Staff Working Document Background analysis per beneficiary country accompanying the Report from the Commission to the European Parliament and the Council on the implementation of macro-financial assistance to third countries in 2016, June 2017, p. 13-16
The Kyrgyz Republic economy was affected in 2009 by the international financial crisis and in June 2010 by ethnic violence. These events disrupted economic activities, creating substantial public expenditure needs for reconstruction and social assistance, and resulted in important external and budgetary financial gaps. At the donors' conference held in Bishkek on 27 July 2010, the EU pledged to provide to the country Macro-Financial Assistance (MFA), which is a form of financial aid extended by the EU to partner countries experiencing a balance of payments crisis.
On 20 December 2011, the European Commission adopted a proposal to provide up to EUR 30 million of MFA to the Kyrgyz Republic, in the form of a grant of EUR 15 million and a medium-term loan of EUR 15 million, which was accompanied by a detailed evaluation of the Kyrgyz Republic's needs.
- Proposal for EU Macro-Financial Assistance to the Kyrgyz Republic
- Ex-ante evaluation statement Macro-Financial Assistance to the Kyrgyz Republic
Formal approval of the European Commission’s proposal was delayed by a procedural disagreement between the Council and European Parliament. A compromise agreement was reached in May 2013, and the decision was adopted by the European Parliament and the Council on 22 October 2013. The Memorandum of Understanding (MoU) was signed on 2 October 2014, followed by the signature of the Loan Facility Agreement and the Grant Agreement on 6 and 31 October 2014. The Parliament of the Kyrgyz Republic ratified the MoU, as well as the Loan and Grant Agreements, on 21 February 2015. The Commission approved the release of the first tranche of the MFA on 22 May 2015. The first EUR 15 million in this MFA programme to the Kyrgyz Republic were disbursed in two instalments, EUR 10 million in grants on 11 June and EUR 5 million in loans on 15 October 2015.
Considering the satisfactory progress of the Kyrgyz authorities with the implementation of the policy conditionality under MFA programme, as laid down in the MoU, and given Kyrgyz Republic’s satisfactory track record with the implementation of its IMF programme, the Commission approved the release of the second loan tranche on 25 January 2016 (EUR 10 million). Based on these decisions, the Commission disbursed the grant element of the second tranche (EUR 5 million) to the Kyrgyz authorities on 10 February 2016 and the loan element (EUR 10 million) on 13 April 2016.
- 26 January 2016: EU releases EUR 15 million of Macro-Financial Assistance
- 11 June 2015: EU disburses €10 million in financial assistance to the Kyrgyz Republic
Related EU Policies and Activities
The links below provide additional information on EU-Kyrgyz Republic relations: