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. Last Updated: 07/27/2016

Paris Club Likely to Get $12Bln

LONDON -- The State Duma is still considering plans to repay a second tranche of Soviet-era debt to the Paris Club nations, Deputy Finance Minister Sergei Storchak said on Friday, adding that the next payment could be about $12 billion.

"The decision has not been taken; they are working on it," Storchak told reporters at a meeting of finance ministers from the Group of Seven leading industrial countries in London.

Russia completed payments on the first tranche -- $15 billion -- of Paris Club debts this year.

Its outstanding debts to the club of sovereign lender nations stand at about $28 billion, and it is expected to pay back a second tranche in 2006, funded by surplus oil revenues.

The Finance Ministry thinks it is "necessary to make a second repayment," Storchak said, adding that it could total about $12 billion.

He said the tranche would not include repayments to Germany on the debt that it used to secure an issue of so-called ARIES bonds. Germany raised money for its 2004 budget with the bonds backed by 7.35 billion euros ($8.6 billion) of future Russian debt repayments.

n Russia plans to swap a second tranche of Soviet-era commercial debt into eurobonds, a move originally scheduled for this fall, by January, Storchak said on Saturday. "It is happening. We are actively working with those creditors who did not have time to file the relevant demands," he told reporters.