RUSSIA - Apr. 19 - Debt Deal.The Finance Ministry outlines the terms agreed with foreign creditors under which the country's Soviet-era trade debt will be restructured into two sets of dollar-denominated bonds. The ministry would offer to swap eligible trade debt for international bonds due in 2006-2010 and 2007-2030, treating participating lenders as if they are late-joining members of the London Club An informal group of private creditors on the international stage. Similar to the Paris Club of public lenders. London Club is not the only informal group of private creditors. Its first meeting took place in 1976 in response to Zaire's payment problems. of commercial creditors. Deputy Finance Minister Sergei Kolotukhin says the deal aims to restructure about $4 bn of ex-Soviet debt, under terms that would allow Moscow Moscow, city, Russia Moscow (mŏs`kou, –kō), Rus. Moskva, city (1991 est. pop. 8,802,000), capital of Russia and of Moscow region and the administrative center of the Central district, W central European Russia, on the to shave shave (shav) 1. to cut at or parallel to the surface of the skin. 2. to remove the beard or other body hair by such a process. 3. to cut thin slices from or to cut into thin slices. $1.5 bn from its total $144 bn debt burden. This is similar to a deal agreed last year between Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). and the London Club, which wrote off about one-third of $32 bn of Soviet-era debt and restructured the remaining $21 bn into 10 and 30-year international bonds. Kolotukhin has said the total amount of bonds to be issued under commercial debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: would be $2.5 bn, and favourable terms for the swap would allow Moscow to reduce debt servicing and repayment by another $400m or so. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion