Russian President Vladimir Putin has signed a law ratifying a protocol that introduces a new mechanism for Pakistan to repay previously granted loans. The document has been published on the official legal information portal.
As of June 1, 2023, Pakistan's total debt to Russia stood at $79.15 million (excluding penalty interest), with $44.34 million overdue.
The primary objective of the new protocol is to establish a legal framework for restructuring the mentioned debt. It outlines a fresh repayment procedure, specifying the amounts to be settled, setting a debt repayment schedule (to be completed by 2027), and establishing the process for interest accrual and payment. Notably, one article in the protocol allows for payments in Russian rubles or Chinese yuan.
Accompanying documents highlight that the new debt repayment mechanism takes into account Pakistan's ability to pay. The ratification of the protocol is anticipated to foster the development and enhancement of trade and economic ties between Moscow and Islamabad, as well as contribute to a favorable investment climate in Russian-Pakistani relations.
The law will become effective 10 days after its publication.
GSV "Russia - Islamic World"
Photo: Federation Council
Based on materials from TASS