Western government creditors should, in all cases, be accorded equal or pari passu treatment with private bank creditors in debt rescheduling negotiations.
Details of the debt rescheduling will now be announced on August 24th.
The reconfigured Soviet center is also collaborating with Western governments to stave off an imminent Soviet debt rescheduling by quick infusions of taxpayer-guaranteed funds.
What is called for now is expanded debt rescheduling covering several years beyond 1992 (including the debt contracted after 1 January 1991), to say nothing of debt forgiveness.
Western government creditors should, in all cases, be accorded equal or pari passu treatment with private bank creditors in debt rescheduling negotiations, which is not now the case.
Risk: Western governments and banks will threaten to deny any new credits to Russia or other CIS member states if the latter insist on substantial debt rescheduling or forgiveness.
And for the moment, the international interest in the region, besides resulting in military assistance, has helpfully translated into more aid money and debt rescheduling for its poorer countries.
They artificially lower the interest rates and increase the size of credits as the risk of any future debt rescheduling or default is transferred from private commercial banks to Western taxpayers.
"The Soviet Union is already in a piecemeal debt rescheduling with a series of 'quiet' Western government 'refinancings' likely this year -- all in the interest of avoiding a more formal and debilitating Paris Club process, " Center Board member Robinson said.
They are, not surprisingly, desperately urging their allies in the West to inject new taxpayer-underwritten credits to the new Union now so that German firms and banks can be at least partially paid out before the balloon goes up on a formal debt rescheduling.
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The banking laws introduced at the beginning of the month were intended to buy time while the second stage of the debt-rescheduling plan is completed.
Even if Greece's official creditors give some leeway, by slightly lowering interest rates or rescheduling debt payments, the threat will remain that Greece will have to leave the euro.
Then they suggested a rescheduling of debt payments to German banks.
There is also growing optimism that Pakistan will get generous terms for rescheduling its debt with the Paris Club - a club of rich states which lend money to less developed countries.
"a generous rescheduling of official debt and reductions of 50% or more of the principal on official debt" in Paris Club arrangements.
The sharply increased use of bonds and other securities has actually compounded the problem of moving such governments toward disciplined, transparent financing methods and made more difficult the rescheduling of such debt instruments during periods of financial distress.
His remarks came just before a meeting in Tokyo that was to discuss rescheduling Indonesia's debt.
It should be understood, however, that there is no real distinction between an involuntary debt refinancing and a publicly announced rescheduling.
Inevitably, there will be strenuous efforts made by the Bush Administration, other Western governments and numerous private banks to stampede the former Soviet Union into a commitment to secure all debt obligations beyond the very limited rescheduling of principal payments already agreed for 1992.
An international outcry is no less in order now regarding the incipient EU rescheduling of Syria's external debt.
The bottom line is that the Soviet Union should reschedule its debt now, rather than have such a rescheduling artificially staved-off at the expense of Western taxpayers.
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