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Russia pays USSR outstanding debt to London Club

25 January 2010 15:05 (UTC +04:00)

Bakuâ€“ APA-Economics. Russia has paid off the remaining Soviet-era commercial debt to the London Club of creditors, which was not swapped for Russia’s Eurobonds, the Finance Ministry said on Monday, Ria Novosti reported.
The debt remainder was paid off in late 2009 when the Finance Ministry transferred $1 million to London Club creditors in exchange for their debt instruments.
"No further talks with the debt holders that failed to file claims on their London Club instruments or accept a debt reschedule offer made in 2009 are planned," the ministry said in a statement.
Russia’s liabilities to the London Club involved Soviet-era debts accrued on loans extended by private commercial banks from Western Europe, the United States and Japan before December 31, 1991.
In 1997, Russia rescheduled its debt to the London Club of commercial creditors when its principal debt was converted into Principal Notes (PRINs) and interest into Interest Arrears Notes (IANs).
After the 1998 financial crisis, Russia ran into difficulties with its debt service and in 2000 agreed a second restructuring with the London Club, under which PRINs and IANs were swapped for Russia’s sovereign Eurobonds worth $31.7 billion with maturities in 2010 and 2030.
Overall, the Finance Ministry has made four debt swap offers, which have been accepted by 99.9% of creditors.