home << program areas << debt for nonproliferation << debt figures
Debt for Nonproliferation: Debt Figures
 | |
| |
|
Russia's
total external debt
(Information
on this page was supported by 
Nuclear
Threat Initiative (NTI))
Russia has four types of external debt:
1) bilateral debt, which is acquired from other governments, including both public debt and publicly-guaranteed debt; 2) multilateral debt, acquired from multilateral financial lending institutions such as the International Monetary Fund (IMF), or World Bank; 3) commercial/private debt, acquired from commercial banks, individuals, and investment firms; and 4) miscellaneous debt owed by official elements in Russia like regional governments, and debt not subject to Paris Club or London Club negotiations. Almost any restructuring of debt between Russia and creditor institutions, some of which have already demonstrated flexibility in repayment strategy, can be fertile ground to effect a debt conversion.
Currently, Russia's total external debt (below) is estimated at $130.1 bn. Approximately 50% of this debt dates from the Soviet era. About $2.7 bn of this Soviet era debt is owed the U.S., with $480.5 mn in the form of Lend-Lease debt dating from WWII. As borrowing grows and older debt is serviced, the overall structure of this external debt alters, changing the context in which debt reduction for Russia needs to be considered.
The Paris Club is a group of official creditors consisting of the major industrialized countries who act as a group to resolve the inability of its debtor countries to service their official/bilateral debt. In July 1999, a Russia/IMF agreement was signed providing for $4.5 bn to be used primarily to service Paris Club debt, and in August 1999, the Paris Club provided a framework agreement that postponed payment of debt principal until after the 2001 presidential election, but continued interest obligations. Currently, Russia's total Paris Club debt is $41.2 bn.
The London Club is a group of private creditors (banks) that held $32 bn worth of Soviet-era debt on which Russia defaulted in the financial crisis of 1998. This debt was later restructured. In February 2000, Russia and the London Club Advisory Committee met to finalize the rescheduling of $31.8 bn of Soviet-era debt, resulting in a considerable lowering of the total debt owed. Currently, Russia's London Club debt is $21.2 bn.
|
_____________________________________________ |