Open violence within the Central Asian nation Kyrgyzstan has cost hundreds of lives, created at least 400,000 refugees and all but destroyed the national budget. The nation’s move toward parliamentary democracy – which has emboldened supporters of overthrown previous President Kurmanbek Bakiyev and militants from Uzbekistan – has been at the center of clashes between armed troops and civilian protesters. Kyrgyzstan has been trying to recover now that the fighting is stopping. There is no more money accessible as reported by Reuters.
International donors will give Kyrgyzstan $ 1.1 billion instant money to Kyrgyzstan from donors
$ 600 million will be given as easy money in 2010 while the rest comes in 2011, which all comes from donors in a conference in Kyrgyzstan’s capital city, Bishkek. Acting President Roza Otunbayeva encouraged donors and representatives from the World Bank and United Nations with a promise the nation will discover the necessary resources to rebuild. Considering the political turmoil of the past few months has caused the national economy to shrink by at least 5 percent (5.5 percent growth had been forecast before the violence started), the financial windfall comes at just the right time. Kyrgyzstan was in need of additional cash, and also the donors have pledged to deliver.
At least $ 1 billion needed just to fix up buildings
Kyrgystan’s spending budget now won’t contain 13.5 percent of its gross domestic product it would initially have counted on, reports Reuters. Once Bakiyev was overthrown, the total deficit jumped from $ 269 million to $ 619 million, per acting Kyrgyzstan Finance Minister Chorobek Imashev. Acting President Otunbayeva has announced that more than $ 350 million is necessary to rebuild settlements in Osh and Jalalabad, while $ 100 million more is needed to restart the local economy. In addition, energy rebuilding costs are expected to total $ 180 million, and agriculture will require $ 50 million. $ 1.1 billion will be needed if we want to help stabilize a nation in chaos.
Further reading
Reuters
ca.reuters.com/article/topNews/idCATRE66Q31F20100727
Chaos in Kyrgyzstan (WARNING – Some violent images may be disturbing)
youtube.com/watch?v=0L1srqYLnu8
