MOSCOW — Agreement between Russia and the Paris Club envisages all creditors from the club refraining from the conversion of Russia's debts into securities for 18 months, finance minister Alexey Kudrin has told reporters. Therefore, the creditors would refrain from issuing bonds, tied to Russia's debts, and would not sell these debts to other countries, the minister explained. In the future, creditors from the Paris Club will be awaiting Russia's new proposals on repaying its debts ahead of schedule. If such proposals were received, the moratorium on the debt's conversion into bonds would be extended for six more months.

In the summer of 2004, Germany issued credit notes, tied to Russia's debts to this country, which is a Paris Club member, totaling $6bn, so as to cover its budget deficit. Therefore, instruments tied to Russia's liabilities have emerged on the market without Russia's consent. "This is unacceptable," the minister said. The present agreement would allow members of the Paris Club to avoid such moves in the future.

Today Russia signed an agreement with creditors from the Paris Club on repaying debts to these countries, totaling $15bn, ahead of schedule. The payments will be made in accordance with the debt's nominal amount before August 20 of this year. Russia's overall debt to the Paris Club totals approximately $43bn.