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Russia waives $95m interest on $175m debt, agree to pay $18m in claims

JAVED MEHMOOD

ISLAMABAD: Russia has not only rolled over its debt but waived off mark-up worth $95 million, trimming debt to only $80 million against the actual $175 million, and also agreed to pay Pakistani exporters' claims worth $18 million, it was learnt.

Sources told Business Recorder that a government delegation, comprising officials from the Economic Affairs Division and Ministry of Commerce had rushed to Russia last week for two purposes: rescheduling of debt, and settlement of claims of Pakistani exporters and freight agents.

The actual Russian loan, which had amounted to $175 million, was chopped to $80 million by waiving 35 percent mark-up ($95 million), Secretary Economic Affairs Division, Javed Akram told Business Recorder on Sunday.

He said that the Russian negotiators demanded 9.5 percent interest on the rescheduled loan, but finally agreed to the Pakistani proposal of 6.8 percent mark-up on the rolled-over loan.

Secretary Economic Affairs disclosed that in the next few days, may be after Eid, negotiations would also be held with Italy and Belgium for the rescheduling of debt.

Russia has also agreed to pay $18 million claims worth to Pakistani exporters and freight agents against the goods exported a few years back.

Secretary Commerce, Naveed Ahsan told Business Recorder that Russia has agreed to pay the claims by June 30, 2000.

He said the modalities of the payment and adjustment of trade money would be sorted out shortly.

Additional Secretary Commerce Muhammad Sulaiman represented the Ministry of Commerce in Russia.