ID :
192408
Sat, 07/02/2011 - 11:04
Auther :

Russia clears 20-yr overdue rice debt to Thailand

BANGKOK, July 2 (TNA) - The Thai Ministry of Commerce says that Russia has already cleared its two-decade overdue rice debt, worth about 1.11 billion baht, to Thailand.

Chatchai Chukaew, adviser to the Thai commerce minister, revealed on Friday that his ministry earlier asked the Export-Import Bank of Thailand (EXIM) Bank to receive the payment from Moscow and was later informed that the Russian government paid the sum on June 15.

Chatchai said that his ministry was set to transfer the money to the Thai Ministry of Finance next week, noting that Thai caretaker commerce minister Pornthiva Nakasai earlier brought a Thai delegation to Moscow to sign a protocol in which Russia would pay off the overdue debt incurred by its past import of Thai rice.

The signing took place on May 31 and, under the protocol, Russia would pay Thailand 36.44 million US dollars or some 1.11 billion baht for the rice debt, emerging in 1990 when Russia ordered 200,000 tons of Thai rice and promised to pay for the lot in installments in two years or by March 1993 plus a 4 per cent annual interest.

The lot was, altogether, priced at 60 million US dollars. The Thai Commerce Ministry delivered the rice to Moscow in January 1991. Then the Soviet Union collapsed when its paid installments amounted to only 3.4 million US dollars.

Russia had tried to repay the debt and a debt restructuring agreement was sealed in 1994 and at that time the outstanding debt amounted to 39.53 million US dollars. Russia later suspended its repayment due to its financial crisis. Thailand sought to restructure the debt again in 2003. Russia agreed consequently to pay the principal of 36.44 million US dollars plus a 2.5 per cent annual interest.

The Thai Cabinet then resolved last year to receive the repayment in cash and write off the interest and the Thai Commerce Ministry, therefore, started to discuss the proposal with Russia and the negotiation finally led to the Russian debt clearance. (TNA)

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