| July 2008 - Business News |
| July 2008 |
|
Russia forgives Syrian debt Russia’s parliament has ratified an intergovernmental agreement to write off nearly three quarters of Syria’s roughly USD 14.5bn debt from the Soviet era. The State Duma, Russia’s lower house, registered its approval for the 2005 deal and a 2007 supplement in a 401 in favour to 40 against vote on June 6. According to the agreement, Russia will write off 73 percent of the debt. The remaining USD 3.6bn will be paid via a one-off USD 1.5bn convertible currency payment, while USD 2.1bn will be paid off in Syrian pounds over a 10-year period. The funds are expected to be used in a number of joint projects between the two countries in the oil, gas, water and industry sectors. Syria’s debt to Russia accrued as a result of Soviet arms deliveries to Damascus. Russia has written off large portions of Soviet-era debts owed by several Middle Eastern nations, much of it for military equipment, as it has moved to bolster relations with governments in the region in recent years. |