http://www.kommersant.com/page.asp?id=543373
>From Mongolia to Zambia // Whose Debts Russia Is Forgiving After writing off $10 billion of Syria's debts (the applicable documents were signed during the visit of that country's president, Bashar Assad, to Moscow), Russia has strengthened its position as a world leader in foreign debt writeoffs in relative figures (i.e., relative to the national GDP). This latest writeoff ranks third in the rating we have compiled of the largest “debt amnesties” announced by Russia. The rating opens with a New Year's gift that Russia presented to Mongolia at the end of 2003. According to various estimates, from $9.7 billion to $11.1 billion was written off for that country, which started on the road to socialism back in 1924 and from then on steadily built up debt to the USSR right up to the latter's collapse. Mongolia managed to pay the $300 million that was not forgiven almost immediately. It should be noted that there was no chance of repaying the debt. At the time the writeoff agreement was reached, Mongolia's GDP was less than half of the amount of debt. Another former socialist country – Vietnam – was at almost the same level as Mongolia in amount of debt to the USSR (inherited by Russia). However, somewhat less was written off from Vietnam. But according to a Russian – Vietnamese agreement of 2000, most payments of the remaining $1.5 billion were put off to the distant future – the period between 2016 and 2033. Russia wrote off slightly less than $10 billion of Iraq's debts (hopes for their repayment, which were rather faint before, finally evaporated after the American invasion of that country). It is worth noting that in relative figures, Russia forgave Iraq more than any other creditor country (countries belonging to the Paris Club made the decision to write off 80 percent of Iraq's foreign debt, whereas Russia wrote off nearly 90 percent). Russian President Vladimir Putin explained this generosity by the fact that ties of “friendship and mutual sympathy” devoid of any “ideological slant” connected our two countries. However, at a meeting with Iyad Allawi, Iraq's prime minister, President Putin also expressed the hope that as a reciprocal goodwill gesture, the Iraqi leadership would consider the interests of Russian companies in Iraq. Ethiopia's debt is also a legacy of Soviet times both for Russia and for Ethiopia. For 17 years, the USSR actively financed and provided military equipment for the dictatorship of Mengistu Haile Mariam, who proclaimed a policy of building socialism. In 2001, Russia wrote off 80 percent of this debt, and the rest of the funds were put into a program for restructuring and reducing the debts of the Paris Club of creditors. The Sandinistas, who ruled Nicaragua until 1990, were also building socialism and gladly borrowed both money and military equipment from the USSR. The Soviet Union was the largest creditor of this Latin American country. After the overthrow of the Sandinista regime, the new Nicaraguan government asked the USSR to write off the debt, but owing to the collapse of the USSR, talks on this matter were already taking place in Russia. In 1992, Russia forgave $2.55 billion of the $3.11 billion debt. But since the Nicaraguan side never made any payments, the debt rose to, and passed, the previous level. In 1996, Nicaragua owed Russia $3.4 billion, of which 90 percent was forgiven, and it was proposed to pay off the remaining amount in installments over 15 years. Finally, last year, Russia forgave its debtor, who had never paid the remaining debt. Thus, Russia forgave Nicaragua an amount nearly double the initial debt. Angola's debt, which also originated in that country's period of building socialism, was effectively settled in 1996. Although Russia wrote off only 70 percent of the $5 billion debt, under the terms of a bilateral agreement, the remaining money must be repaid in the form of bills before 2016. Russia will have to wait even longer for repayment of part of the debt of one more country that built socialism that turned into civil war – Mozambique. In 1997, Russia forgave 80 percent of that country's debts to the Soviet Union; and in 2002, it forgave half of the remainder with deferred payments of the second half over a period 30 years. Laos has also been granted a long-term deferral of its debts. Nearly 70 percent of that country's debts were written off in 2003, and receipt of the remaining amount, together with interest (at a special reduced rate) is expected before 2036. Zambia's debt was also restructured in 2001 under similar terms (most of it was written off, and the remainder will be paid in installments over 33 years. However, there may be new, large debt amnesties in future. Russia has not settled the debt problem of multi-billion dollar debtors like Algeria, Afghanistan, Yemen, Cambodia, North Korea, Cuba, and Libya. As usual, it will probably not get anything. The only choice is to forgive. -- To alcohol! The cause of - and solution to - all of life's problems! -- Homer Simpson ------------------------ Yahoo! Groups Sponsor --------------------~--> Give underprivileged students the materials they need to learn. Bring education to life by funding a specific classroom project. http://us.click.yahoo.com/FHLuJD/_WnJAA/cUmLAA/TySplB/TM --------------------------------------------------------------------~-> -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: [email protected] Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. 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