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Russia agrees debt restructuring

Sunday 01 August 1999 18:02 EDT
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RUSSIA STRUCK a deal yesterday with the Paris Club of official creditors to reschedule Soviet-era debts falling due this year and next. The Itar-Tass news agency reported Russia would now pay about $600m in 1999 and 2000, instead of $8bn. An overall settlement on the total Soviet- era debt owed to the governments belonging to the Paris Club, about $38bn, would be discussed in autumn 2000.

Sunday's deal followed approval by the International Monetary Fund last Wednesday of a new $4.5bn loan for Russia over 18 months. This weekend's Paris Club talks are to be followed by separate negotiations with the London Club of commercial creditors on Tuesday.

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