Then they suggested a rescheduling of debt payments to German banks.

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"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.

CENTERFORSECURITYPOLICY: Center For Security Policy

"a generous rescheduling of official debt and reductions of 50% or more of the principal on official debt" in Paris Club arrangements.

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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.

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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.

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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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