Russia to forgive most of 11 dollar bln Afghan debt

MOSCOW, July 6 (Reuters) Russia may sign an agreement to forgive most of Afghanistan's 11 dollar billion in debt to Moscow by the end of this month, Finance Minister Alexei Kudrin was quoted as saying today.

''I hope an agreement will be signed by the end of July,'' Kudrin said, according to the Interfax news agency. Officials have said that Russia is prepared to write off 80-90 per cent of Afghanistan's bilateral debts.

Russia, thanks to booming prices for oil and gas exports, has recovered from devaluation and default in 1998 to boast the world's third-largest central bank reserves, now over 400 billion dollar.

The government has paid off nearly all of Russia's debts to the Paris Club of sovereign creditors. It has already forgiven loans granted to client states by the Soviet Union, often to finance arms deals.

REUTERS GT PM1800