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Russia Approves Plan To Repay Debt
The Russian government on Tuesday approved a plan to raise new revenues to help repay the country's massive foreign debt, Prime Minister Mikhail Kasyanov said Tuesday.
Kasyanov said following a Cabinet meeting that he will submit the plan to parliament for approval.
Earlier, the government press service said Russia has abandoned hopes of rescheduling $ 3.5 billion in debt payments due to the Paris Club of creditor nations this year.
Although a setback, the debt payments may be offset by windfall profits from high world prices for oil, a major Russian export commodity. Russia was the world's second-largest petroleum exporting nation after Saudi Arabia in 2000.
The government also admitted Tuesday that large-scale lending from the International Monetary Fund is unlikely this year. The two issues were tied, because a deal with the IMF was a prerequisite for formal negotiations with the Paris Club on restructuring.
The plan approved Tuesday foresees $3.8 billion in additional revenues and spending, according to the Interfax news agency.
Last week, Finance Minister Alexei Kudrin said the government planned to raise a larger sum, $6.4 billion in extra revenue and spending.
The additional revenue will come from increased taxes, proceeds from privatizing government property and borrowing either from the Central Bank or on the domestic debt market, the state-owned RTR television reported.
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