JULY 1 2014 (The Conway Bulletin) – Speaking at a ceremony where government staff received free housing, Kyrgyz President Almazbek Atambayev said that $100m of a $1.2b fund from Russia designated for Kyrgyzstan’s Customs Union entry would go towards a pot for cheap credit for citizens looking to buy homes.
“Having a roof over your head means having freedom and happiness,” said Atambayev at the ceremony. Kyrgyzstan may formally enter the economic alliance, which is set to become the Eurasian Economic Union, as early as autumn this year.
Housing is a politicised issue in Kyrgyzstan, with illegal land grabs affecting the country’s two main cities, Bishkek and Osh. Poor rural migrants have formed new settlements, often unconnected to municipal services like electricity, stretching for miles beyond both cities.
The Customs Union is also a highly politicised issue and Mr Atambayev has been at pains to emphasis the benefits of tighter relations with Russia and the joint Kyrgyz-Russian fund. With a start-up capital of $500 million in Russian credits, the fund has been heralded as a means to strengthen Kyrgyzstan’s industrial capacity and move it away from an economic model structured on re-exporting cheap Chinese goods.
ENDS
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(News report from Issue No. 190, published on July 2 2014)