Russia to pay some of its debt to Finland ahead of schedule

Published: 26 February 2005 y., Saturday
Russia has expressed a desire to pay off ahead of schedule its USD 44 billion debt to the 19 creditor countries of the so-called Paris Club, including Finland. In January, Russian President Vladimir Putin reiterated the goal to pay off the country's foreign debt as quickly as possible because of the disadvantageous interest levels. In return for speedy repayments, Russia hopes to be granted debt reductions. At the end of January Russian central bank's gold and currency reserves were just under USD 130 billion, whereas the country's foreign debt in October 2004 totalled USD 113 billion. According to Kalliomäki, the arrangements with the Paris Club could cover maybe a third of what Russia owes Finland, in other words about EUR 200 million. "We would have use for the money", Kalliomäki states, but refuses to further speculate on negotiations that are "at a delicate stage". Russia's biggest creditor Germany's dues amount to USD nine billion. Russia's paying off its foreign debt is very much an internal policy issue. According to government councillor Raine Vairimaa from the Ministry of Finance, the repaying of the debt might even take place later this year. Apart from the Paris Club negotiations, Finland and Russia have been preparing a new agreement on paying back USD 30 million of Russia's debt in deliveries of scientific instruments and services. This agreement is due for signing in March.
Šaltinis: helsinginsanomat.f
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