Kyrgyzstan receives $305 million loan from China for 25 years

Kyrgyzstan receives $305 million loan from China for 25 years

Kyrgyzstan will receive a $305 million preferential loan from China to fulfill financial obligations under the China-Kyrgyzstan-Uzbekistan railway construction project. It is noted that the loan will be provided for a period of 25 years, with a 5-year grace period and an annual interest rate of 1.5%. It is also planned to provide 35 percent of the allocated funds in the form of a grant.

Also, the main construction work within the framework of the project, the cost of which is estimated at about $5 billion, will be carried out on the territory of Kyrgyzstan. The most complex sections of the railway are planned to be built here, while the infrastructure on the territory of Uzbekistan will be repaired and modernized.

For information, a joint venture has been established on the project by three countries - Kyrgyzstan, China and Uzbekistan. Kyrgyzstan's share in it is 24.5 percent. This share will be financed from the state budget and Chinese loan funds.