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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Migrants sell up, flee Arizona ahead of crackdown 25 Jul 2010 Russia attacks Iran's verbal assault on Medvedev 26 Jul 2010 N Dakota, Alaska lead US job creation, study says 26 Jul 2010 Missing U.S. sailor's remains found in Afghanistan 10:10am EDT Europe's prospects brighten as U.S. fades 25 Jul 2010 BP launches image overhaul and ditches Tony Hayward | Video 11:12am EDT Examiner finds evidence of "dishonesty" in Tribune sale 8:00am EDT EU toughens sanctions on Iran as Tehran offers talks 4:33am EDT Obama asks Senate to pass bill on ad disclosure 26 Jul 2010 Antarctic octopuses found with cold-resistant venom 22 Jul 2010 N Dakota, Alaska lead US job creation, study says 26 Jul 2010 Migrants sell up, flee Arizona ahead of crackdown 25 Jul 2010 CORRECTED - Air Berlin expects to join Oneworld in early 2012 11:16am EDT Toyota pushes back U.S. Prius production by years 9:13am EDT Europe's prospects brighten as U.S. fades 25 Jul 2010 Scientists inch towards finding "God particle" | Video 26 Jul 2010 Special Report: Is immigration a desert mirage for the GOP? 9:30am EDT Federal ruling allows iPhone users to alter software 6:31am EDT BP launches image overhaul and ditches Tony Hayward | Video 11:12am EDT Honda to sell plug-in hybrid and electric cars in 2012 21 Jul 2010 Donors agree $1.1 billion aid package for Kyrgyzstan Digg This Tweet This Share on LinkedIn Share on Facebook Related News Kyrgyz govt says donors agree $1.1 bln aid package 8:29am EDT OSCE to send police monitors to Kyrgyzstan Thu, Jul 22 2010 Kyrgyz forces arrest and torture ethnic Uzbeks: U.N. Tue, Jul 20 2010 Money worries and "broken promises" at AIDS conference Sun, Jul 18 2010 U.S. says Kyrgyz must act now to stop more violence Sun, Jul 18 2010 Related Topics World » By Olga Dzyubenko BISHKEK | Tue Jul 27, 2010 10:41am EDT BISHKEK (Reuters) - Kyrgyzstan secured pledges worth $1.1 billion from international donors on Tuesday to help rebuild the strategic Central Asian country after the worst ethnic bloodshed in its modern history. The World Bank and other international bodies agreed to supply a combination of grants and favorable loans to the interim government of Kyrgyzstan, which expects its economy to shrink in 2010 after hundreds were killed in clashes last month. "The amount pledged today by all participating donors is $1.1 billion over the next 30 months to the end of 2012," Theodore Ahlers, World Bank director of strategy and operations, told a news conference in the Kyrgyz capital Bishkek. Acting President Roza Otunbayeva, who has led Kyrgyzstan since the overthrow of former President Kurmanbek Bakiyev in April, said the first $600 million would be disbursed as emergency aid during the remaining months of this year. At least 300 people were killed, and possibly hundreds more, during several days of violence last month in Kyrgyzstan, a former Soviet republic hosting U.S. and Russian military air bases and lying on a drug trafficking route out of Afghanistan. Thousands of homes were torched in the clashes between ethnic Kyrgyz and Uzbeks, forcing 400,000 people to flee at the height of the violence and leaving parts of the southern cities of Osh and Jalalabad in ruins. Otunbayeva said Kyrgyzstan's economy was likely to shrink by 5 percent this year, a sharp reversal of the 5.5 percent growth forecast before the turmoil that began with the April revolt. She said more than $350 million was needed to rebuild settlements in Osh and Jalalabad regions, plus a further $100 million to reignite the local economy in the south, $180 million for the energy sector and $50 million for food and agriculture. Aid would also be needed to plug a budget deficit estimated this year at 13.5 percent of gross domestic product, said Chorobek Imashev, finance minister in the interim government. Ahlers said the aid package would be supplied by the World Bank, the Asian Development Bank, the European Commission and the Eurasian Development Bank's Anti-Crisis Fund, as well as a number of bilateral donors. PARLIAMENTARY APPROVAL Kyrgyzstan is set to become the first parliamentary democracy in Central Asia, a region mainly run by presidential strongmen, after voters approved constitutional changes in a June 27 referendum. Elections are scheduled for October. "We've heard a strong and clear commitment to reshaping Kyrgyz institutions to ensure they are accountable, that they can deliver the rule of law and provide prosperity for all," said Kori Udovicki, U.N. Assistant Secretary-General and director of the U.N. Development Programme for Europe and CIS. Otunbayeva said some of the grants and loans agreed for next year and 2012 would first need to be ratified by parliament. She said the breakdown of aid between grants and loans was still a matter of negotiation. In a report prepared for Tuesday's meeting, donors gave a slightly different outlook for GDP, forecasting a decline of 3.5 percent for 2010 versus estimated growth of 4.6 percent prior to the April revolution. Per capita GDP had fallen to $826 from $943, while inflation was now forecast at 6.6 percent versus 13 percent previously. Imashev said Kyrgyzstan's external debt amounted to 61 percent of GDP and could rise by a further 8 to 9 percentage points after the support package was finalized. Tensions persist in the south, where human rights groups say residents face violence, interrogation and arrest. The Organization for Security and Cooperation in Europe will send an unarmed police force in August. "In terms of security, the risks are high and the capacity of the government to stabilize the situation is still not quite there," said Udovicki. The interim government has accused supporters of Bakiyev, the former president, of stoking the violence. Bakiyev, exiled in Belarus, has denied any involvement. (Additional reporting and writing by Robin Paxton; editing by Maria Golovnina) World Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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