Russia to pay Soviet-era debt to Paris Club: Minister

Moscow, June 22 (UNI) Russian Finance Minister Alexei Kudrin today today Russia will pay all Soviet-era debt to the Paris Club of Creditor Nations by August 21.

He said Russia will pay 22.3 billion dollars to the Paris Club, of which 1 billion dollar will be a premium for early repayment. Out of the 1 billion dollar premium, 700 million dollars will be paid to Germany and the rest to Britain, France and the Netherlands.

He pointed out that according to the scheme for repayment, which was approved by parliament today, 52.1 per cent of the debt would be repaid at par value.

''All creditor nations of the Paris Club have confirmed their participation in the scheme for early debt repayment. After an order is issued by parliament, the agreement, which has already been signed by the Paris Club, will be signed by Russia,'' RIA news agency quoted Mr Kudrin as saying.

Russia would then sign bilateral agreement with each of the creditor countries, he said, adding the scheme had received the approval of Prime Minister Mikhail Fradkov, Deputy Prime Minister Alexander Zhukov, Economic Development and Trade Minister German Gref and Central Bank Chairman Sergei Ignatyev.

Moscow recognised the Soviet Union's foreign debt in 1993 and joined the Paris Club in 1997. Last year, Russia made the largest transaction in the Club's history, repaying 15 billion dollars.

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