Russia’s upper house ratifies deal to write off 97% of Mongolia’s debt

MOSCOW, January 27. /TASS/. The Federation Council, the upper house of Russia’s parliament, has ratified an inter-governmental agreement on settling Mongolia’s financial obligations to Russia. As of December 2010, Mongolia’s unsettled financial obligations to Russia totaled $174.2 million. The entire sum of these liabilities was overdue debt. Mongolia’s debt obligations to Moscow emerged in the period until the mid-1990s and comprise debts on loans provided by the former Soviet Union to Mongolia to pay about 163.7 million convertible rubles to the charter capital of the Mongolian-Soviet joint venture Mongolsovtsvetmet, as well as a surplus of 10.5 million clearing US dollars in favor of Russia under clearing accounts opened by Vnesheconombank with the State Bank of Mongolia.

"As a result of bilateral negotiations held in July 2010, the sides managed to reach an agreement, under which Mongolia undertook to repay financial obligations worth 163.7 million convertible rubles and 10.5 million clearing US dollars with a lumpsum payment of $3.8 million," an explanatory note says. According to the note, the deal envisaged receiving funds from the debtor in freely convertible currency expressed in notional settlement units used under lending and trade operations of the former Soviet Union over the period of 20 years and now withdrawn from economic transactions of Russia and Mongolia. Russian Deputy Finance Minister Sergei Storchak said earlier that the write-off would involve 97% of Mongolia’s debt. "It should be noted that the sum involves the debt denominated in the non-existing currency. Actually, the debtor always has a possibility to formulate the issue like this: no currency, no obligations. In this case, we agreed on recalculating the amount into the really existing monetary unit," he said.

Source:Tass News Agency
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic