Russia agrees Afghan debt relief

August 8, 2007 - 0:0

Russia has written off the bulk of Afghanistan's Soviet-era debt, heralding a new period of cooperation between the two countries.

At a ceremony in Moscow, Russia cancelled about 10 billion dollars (£4.9b) in bilateral debt, equivalent to 90 percent of outstanding Afghan obligations.
The debt dates back to the Soviet Union's occupation of Afghanistan between 1979 and 1989.
A million Afghans are estimated to have died in the conflict.
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An agreement last year by the Paris Club of industrialized nations and international creditors to forgive the bulk of Afghanistan's debt paved the way for Monday's agreement.
Russian officials said the agreement would boost Afghanistan's fragile economy.
""This is a historic day for our two countries,"" said Alexei Kudrin, Russia's finance minister.
""Today we have drawn a line under many years of discussion on regulating the debts.""
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Afghan officials said they hoped to forge stronger commercial links with Russia.
""We would like further economic co-operation with Russia,"" said Anwar-ul Haq Ahadi, Afghanistan's finance minister.
""We think Russian companies have competitive advantage and think they can compete in Afghanistan's market.""
The remaining debt is set to be canceled within the next three years.
(Source: BBC