Russia to delay debt payment

Russia to delay debt payment

MOSCOW (AFP): Russia said on Friday it would delay this year's first payments on its US$48 billion debt to the Paris Club of creditor nations, a move described by analysts as a strong-arm negotiating tactic.

"This is not a default of payment but a technical delay of repayments," Russian Deputy Finance Minister Alexei Ulyukayev insisted in an interview with told Moscow Echo radio station.

Russia would respect its obligations to Paris Club, a group of nations that made loans to the former Soviet Union, he said.

The Russian government had exchanged letters with the Paris Club, he added.

Consultations were under way which would enable Russia to delay repayment of about $1.5 billion due in the first quarter of the year, the government said.

But the Paris Club of creditors, led by Germany, Italy, the United States, France and Japan, has made clear that it opposes a moratorium before agreement has been reached.