Servicing the Sovereign Foreign Debt of the Russian Federation

Annual Report 2013
Site map Русский

# Servicing the Sovereign Foreign Debt of the Russian Federation

In 2013, the amount of the sovereign foreign debt of the Russian Federation recorded on Vnesheconombank’s books increased from USD 37.45 bn to USD 42.89 bn.

The amount increased due to the inclusion into the Bank’s books on the instruction of the Russian Federation Ministry of Finance of obligations under 4 issues of the Russian Federation Eurobonds with final maturities in 2019, 2020, 2023 and 2043 (issuance of 2013).

In 2013, Vnesheconombank participated in negotiating 4 intergovernmental draft documents and developing the respective draft Directives by the Russian Government on sovereign foreign debt settlement. Also, the signing of 4 supplements to the interbank agreements on the procedure for book-keeping/settlements of indebtedness was ensured (the Slovak Republic, the Czech Republic, Finland and Kuwait).

Over the reporting period, Vnesheconombank in due time effected payments totaling USD 4.0 bn (drawing on the Russian Federation budget funds) in redemption and servicing of the Russian Federation sovereign foreign debt.

The bulk of payments (USD 3.75 bn) were made in redemption and servicing of the Russian Federation Eurobonds.

In 2013, the Bank’s professionals kept records, carried out servicing and made payments in redemption of the indebtedness under 2 tied credits (foreign trade contracts under which Russian organizations acted as importers of goods and services) extended by foreign counterparties under the Russian Federation Government guarantees after 1 January 1992. Payments amounting to USD 27.6 mn were made in favor of German and Japanese creditors.

Also, scheduled payments in the sum equivalent to USD 93.19 mn under the financial credit raised from Japan Bank for International Cooperation, Tokyo, were made.

In 2013, the Bank ensured the redemption and servicing of the sovereign foreign debt of the former USSR and the Russian Federation owed to the countries that are not members of the Paris Club of creditors and Finland in the total amount of USD 137.55 mn. That included debt redemption through the goods and services delivery schemes amounting to USD 20.96 mn (China, Finland and Serbia).Indebtedness of the Russian Federation towards the Slovak Republic, the Czech Republic, Serbia, Finland and Montenegro was fully redeemed. Vnesheconombank, on the instructions of the Russian Federation Ministry of Finance related to the writing off the sovereign foreign debt of the Russian Federation under the former USSR commercial indebtedness, claims on which were considered compliant to the set criteria but were not presented by the holders for settlement before 1 January 2013, wrote the balances of the respective category indebtedness amounting to USD 1.0 mn off the Bank’s books. Apart from this, Vnesheconombank wrote off the Bank’s books the balances of the unsettled obligations under the IANs interest bonds – the London Cub creditors’ debt instruments – in the amount of USD 32.87 mn, as well as the respective sums of the interest accrued.

НАВЕРХ