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Russia will repay embarrassing debt of the USSR in exchange for Eurobonds

Oct 1st, 2009 | By admin | Category: Main News

Russia plans to pay the last part of the debts of the former Soviet Union this year in order to reassure investors before the deployment of international bonds. Accommodation happen the first time since the 1998 default.

remaining obligations with respect to the supply of foreign goods and services, from toothpaste to repair ships, will be repaid by the end of 2009, clarified the director of the department of international financial relations, state debt and gosfinaktivov Finance Ministry of Russia Konstantin Vyshkovsky. According to him, commercial debt, inherited from the Soviet Union, is about $ 1.2 billion, We appreciate the existence of the debt portfolio in Russia as a negative factor, - noted Vyshkovsky.

Russia wants to get rid of all debt claims prior to issue Eurobonds in 2010 for about $ 18 billion The deal will help the government meet its social obligations against the budget deficit.

Potential buyers Eurobond think twice about their purchase, unless the government of Russia did not resolve all disputes, says managing director Turan Corp. Saleh Daher. In his view, the situation is somewhat confused because Russia, being a member of the group of most developed countries of the G-8, still has not paid accumulated over the last years of Soviet commercial debt. At the same time devastated by war, Iraq was able to settle disputes for the majority of commercial claims in less than 2 years after the fall of Saddam Hussein.

We hope that Russia's government put an end to this endless stories before they enter the world's financial markets with a new borrowing program, - said to Bloomberg head of sovereign debt Belgian Export Credit Agency Stephan de Brabanter.

Russia, being the world's biggest energy exporter and the third largest holder of foreign exchange reserves ($ 411.7 billion), accumulated external debt amounting to $ 38.9 billion state debt of the country is 7,4% of GDP, whereas in Mexico, it exceeds 30%, in Britain the figure is 61%, and in the U.S. - 85%.

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