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. Last Updated: 07/27/2016

City, CSFB Agree on $295M Debt

City Hall this week struck an agreement with Credit Suisse First Boston to restructure a $295 million loan that it was unable to finance last year, and secured a 2 billion ruble ($70 million) credit from Trust and Investment Bank to help meet looming payments on another $1 billion of debt.

In addition to the CSFB credit the city must pay back a euro loan of 500 million deutsche marks and 400 billion Italian lire (about $435 million total), as well as credits amounting to almost 10 billion rubles, and another 5 billion rubles worth of bonds that have yet to be released. Peak repayments are due in the spring and at the end of 2002.

Last August, CSFB exercised the right of early repayment on the four-year loan, extended in August 1998.

The bank and the city government later agreed to refinance the debt through two-year Eurobonds to be issued in 2000, but the Finance Ministry did not authorize the issue.