Deputy Finance Minister Sergey Storchak announced that Russia may not take any more credits from the bank, but would rather “become a full stockholder.”
Photo: Mikhail Razuvaev
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Russia Ready to Settle World Bank Debt
The Finance Ministry is ready to pay 80 percent of Russia's debt to the World Bank, Deputy Finance Minister Sergey Storchak announced yesterday in Washington. That debt is $4.4 billion. In 1992, it was $14 billion. Storchak's announcement was unexpected, even to the Russian representatives at the bank. The Russian official also noted that extensive negotiations would be necessary for the payment of the debt.
According to World Bank data, Russia is now implementing 21 projects worth a total of $1.77 billion. About $1.035 billion of that sum has yet to be used. There are, in addition, five projects awaiting approval, which include one related to housing utilities reform and development of a microfinance infrastructure.
Economists note that Russia has no financial need for credits from the World Bank and that Storchak's announcement is an attempt to improve the country's credit rating before the presidential election, a signal to ratings agencies to raise Russia's ratings and demonstrate its financial success to the electorate.
Storchak added that Russia may not take any more credits from the bank, but would rather “become a full stockholder.” World Bank director Klaus Roland noted that Russia is a full stockholder whether it borrows or not. Analysts note that Russia will move closer to the G7 in that none of those countries owe international financial institutions. That is in contrast to the debts of China ($21.8 billion), India ($31.7 billion) and Brazil ($9.6 billion).
www.kommersant.com
All the Article in Russian as of Oct. 24, 2007
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