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PolicyAugust 29 2010

Kyrgyzstan's banks are under pressure

Closed for business: Kyrgyz police patrol destroyed shops in Osh following violence in June.Persistent violence in the south of Kyrgyzstan, combined with the interim government's fears about capital flight, are placing heavy pressure on the country's banking sector. Writer Philip Alexander
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Kyrgyzstan's banks are under pressure

Physical security remains everyone's top priority in Kyrgyzstan following the upheaval that began in early April 2010. During the overthrow of the government of Kurmanbek Bakiyev, who had himself taken power in an uprising five years earlier, 86 people were killed, most of them protestors confronting armed police.

Unrest continued after the interim government of president Roza Otunbayeva took control, flaring into severe violence between Kyrgyz and Uzbek communities in the southern cities of Osh and Zhalalabad in June, which left an estimated 2000 people dead and hundreds of thousands displaced.

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