After all, the arrearages of companies and banks of more than one European nation were settled via earmarked government credits in 1990 and 1991.

CENTERFORSECURITYPOLICY: The U.S.-Soviet Trade Agreement: Overtaken By Events

This windfall could ultimately make them whole on loan repayments and cleaned up arrearages that would otherwise have to be partially, if not totally, written off.

CENTERFORSECURITYPOLICY: The U.S.-Soviet Trade Agreement: Overtaken By Events

The elimination of all Soviet payment arrearages to Western suppliers and an accompanying report from the executive branch within 60 days that provides all financial data relevant to a thorough Western analysis of Soviet creditworthiness.

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As a practical matter, Moscow's ability to attract interbank deposits, renew short-term credit lines and secure Western loans has been sharply curtailed by the Soviet Union's non-creditworthy status and its massive arrearages to Western firms.

CENTERFORSECURITYPOLICY: Center For Security Policy

On 26 June 1990, for example, Soviet Foreign Ministry spokesman Gennadi Gerasimov said that if the USSR gets financial assistance from the European Community, it will use the aid to pay off chronic Soviet foreign payment arrearages.

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Even if Russia cleans up its arrearages with Eximbank, another problem confronts conscientious professionals at the Bank: The Export-Import Bank is required by statute to determine that there is a reasonable assurance of repayment from the borrower.

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Among other things, this was accomplished through the device of allowing their credits to be used to "purchase" narrow national objectives such as German reunification, the removal of Soviet troops and preferential treatment in cleaning up large payment arrearages to German firms.

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