Russia has reached agreement with international banks to rechedule a substantial part of its foreign debt. The agreement signed in Frankfurt yesterday, comes after four years’ negotiation and requires Russia to repay $32 billion over a period of 25 years. This represents the bulk of what Russia owes to the commercial banks of the Western world and about one-third of its total foreign debt. Rescheduling means Russia is now free to raise more loans with the aim of stimulating the kind of economic growth that would enable it eventually to pay off all its debts. Economic growth would be good news all around–not just for the hard-pressed Russian population but also for the western banks, who would otherwise have little hope of ever getting their money back. (9)
US, Russia Discuss Practical Steps Against Organized Crime.