MOSCOW, September 22 (RIA Novosti) - The Russian Finance Ministry plans to repay an additional $3-$5 billion of the country's external debt by the end of the year, Finance Minister Alexei Kudrin said Thursday.
"We hope that by the end of the year we will make payments on external debt, and in this way free up additional funds, which will be considered in the second and third budget readings as saved funds and used for other expenditures," Kudrin said.
The finance minister also said that as a result of Russia's early repayment of part of its Soviet-era debt to the Paris Club of creditor nations in 2004 (Russia paid a reduced sum through an agreement with certain Paris Club nations), around $35 million had been freed up for financing various areas of the economy. Russia will be able to save approximately this amount each year through early repayments, he said.
"We are now holding consultations with various countries over early repayments, which will not hurt the country's economy," he said.
