Russia Writes Off Nearly $10 Billion In Afghan
Debt
August 8, 2007
Radio Free Europe / Radio
Liberty
Daily Afghan Report
Russia and Afghanistan on August 6 signed an
agreement relieving Afghanistan of 90 percent of its
$11 billion debt to the Kremlin, with the potential to
write off the remaining balance, AP reported. The debt
write-off is expected to help boost the Afghan
economy. Russian Finance Minister Aleksei Kudrin and
his Afghan counterpart, Anwar al-Haq Ahadi, signed an
agreement stating that the remaining debt is to be
restructured and paid over 23 years. However, it
states that if Kabul successfully implements reforms
under the Heavily Indebted Poor Countries Initiative (HIPC)
of the International Monetary Fund, the remaining $1
billion could also be forgiven. Afghanistan met the
qualifications to participate in the HIPC in July.
Russia is by far the largest creditor nation for
Afghanistan and is owed nearly 95 percent of Kabul's
total foreign debt, due to massive weapon sales during
the Soviet era.
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