Russia Asks Creditors To Ponder Debt Pact

Deputy Prime Minister Alexander Shokhin said Tuesday that Russia was worried about its medium-term ability to service the debts of the former Soviet Union and would like creditors to consider a deal for 1995 and 1996.Shokhin, Russia's chief debt negotiator, told reporters that a meeting this week with the Paris Club of creditor states would concentrate on rescheduling debts due in 1994.But he added: "We would like our negotiating partners to bear in mind that we are worried by medium-term prospects for Russia servicing the foreign debt of the former Soviet Union."We would like to realize such a scheme so that for one thing, there will be a line for servicing debts for 1995 and 1996, and we would like to ask creditors to think about this."Russia, which took over responsibility for servicing the debts of the former Soviet Union when the superpower fell apart, owes Western creditors about $80 billion.It reached a rescheduling deal with creditor states last year but has yet to seal an agreement for 1994. It has budgeted $4.1 billion to service foreign debt this year.An International Monetary Fund official said last month Russia was likely to win a Paris Club deal similar to last year's $15 billion pact.Shokhin said official creditors had to agree how the debts would be repaid on the basis of equal treatment for all, and he noted that no agreement had been reached yet on Italy's share."Creditors have to agree among themselves so that there will not be any advantage -- for Italy, for example," he said. "If Italy receives more, the rest of the creditors will clearly get less. If creditors want to receive equal treatment, Italy will have to give up some amount. But that is the creditors' affair."A Paris Club rescheduling deal could clear the way for a similar deal with creditor banks. Discussions on such a deal have been frozen for months while the two sides wrangle.