| Russia offered to pay off debts ahead of time Russian President Vladimir Putin presented a surprise to the Paris Club of creditors. In his opinion, pleasant. Yesterday, at a meeting with French Prime Minister Jean-Pierre Raffarin, he said: “Russia would be ready this year and in an advanced mode to make a number of payments as part of repaying the debts of the former USSR to the Paris Club. The results of the development of the Russian economy are such that we are able and even interested in doing this.”
Russian Prime Minister Mikhail Kasyanov, after negotiations with his French counterpart, commented on the idea of the Russian leadership: “We are not talking about revising the payment schedule. If today our partners have a need to receive future funds on mutually beneficial terms, we can pay this year. If there is no such need, we will continue to pay as before.”
The Russian government cited several reasons for “our interest.” Currently, debt obligations to the Paris Club (about $40 billion) are scheduled until 2020. By starting early payments, Russia will somewhat get rid of the burden of interest, as well as future payments. According to one White House official, the financial reserve today allows us to painlessly pay our debts ahead of schedule. And since there is nowhere in particular to invest, the Russian government will simultaneously tie up the excess money.
Apparently, when offering such a deal to the Paris Club, the Russians also took into account the fact that our main creditors - France and Germany - now have quite a lot of problems with their deficit budgets, which by the end of the year could exceed 3%. So these countries might like the idea of getting our debts early. Some Russian experts believe that France and Germany could agree to such an operation.
Sources in the Russian government are keen to emphasize that Russia is not going to force anyone. The government also understands that implementing the idea of early debt repayment is not so easy. Actually, this aspect was specified by Putin himself, who proposed the innovation: “Of course, the cost of money today and tomorrow is different. But this is a subject for consultation. Our experts are ready to discuss these topics.” Apparently, as well as the volume of advanced payments, of course, if it comes to that.
It is no coincidence that the Russian leadership unveiled debt innovations in the presence of the French Prime Minister. Today Mr. Raffarin is one of the most sympathetic leaders in Europe, ready to support Russia. Including in difficult negotiations on accession to the WTO. In any case, Mr. Kasyanov said that he was “happy to hear from Mr. Raffarin that domestic prices for Russian energy resources are no longer an obstacle for the European Union on Russia’s accession to the WTO.” He said that today Minister of Economic Development German Gref will fly to Brussels to try to move forward with the WTO negotiations, taking into account this position.
Summing up the meeting of the Russian-French intergovernmental commission, Mikhail Kasyanov noted that today the portfolio of joint business projects amounts to more than 1 billion euros. The Prime Minister particularly highlighted the success of cooperation in the energy and aerospace sectors. Yesterday, the prime ministers of Russia and France signed one of the largest agreements on the use of the French Kourou spaceport for the launch of Russian satellite carriers. Mr. Raffarin emphasized that this project “is the basis for the space independence of Europe as a whole.” Vera KUZNETSOVA |
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