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Debt restructuring agreement with Russia

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Debt restructuring agreement with Russia

Reductions on repayments

Seychelles has reached a debt restructuring agreement with Russia, resulting in substantial reductions in repayments for a loan granted in 1987.

Initially facing financial strain in 2008, Seychelles had difficulties repaying 6.6 million USD debt to Russia. After years of negotiation, the island nation now owes 2.4 million USD, with a portion to be paid as a lump sum and the remainder in installments until 2027.

Dick Labonte, the Director General of the Debt Management Division of the Ministry of Finance, highlighted the significant reductions Seychelles will benefit from, including a 35 % reduction, along with additional rebates of 22.5 % and 29.03 %. This agreement is part of ongoing efforts to settle Seychelles’ external debt, which currently amounts to 7.5 billion SR, or approximately 1.25 billion USD. A considerable portion of this debt is owed to creditors associated with the Paris Club, a group of twenty industrialized countries.

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