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Russia forgives 90 % of North Korea's debt
Russia has agreed to forgive most of North Korea's debt, with the remaining amount likely to be reinvested into Russian business projects. After debt-settlement talks earlier this year, Russia and North Korea signed a deal to forgive 90 percent of North Korea's $11 billion debt. North Korean state news agency KCNA reported, "A contract was signed in Moscow on readjusting debt that the DPRK owed to the Russian Federation as a result of the loans that the former Soviet Union had offered to the DPRK." Based on previous comments by Russian Vice Finance Minister Sergei Storchnak about the settlement talks, North Korea is likely to restructure its debt into projects that benefit Russian business interests. According to Storchnak, Moscow is considering investing in the North Korean education, health care and energy sectors. Russia has also reportedly been eyeing a project to construct a gas pipeline to South Korea through North Korean terroritory. Posted by: ryuge 2012-09-18 |
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