Report: Russia writes off most of NKorea's debt

AP viaYahooNews ^ | September 15, 2012 | staff reporter

[Daffynition]

MOSCOW (AP) — Russian media report that the country has written off most of North Korea's $11 billion debt.

The Russian finance ministry on Tuesday confirmed that it has signed a debt deal with North Korea, but refused to provide immediate details.

Interfax quoted deputy finance minister Sergei Storchak as saying that Russia has written off 90 percent of the Soviet-era debt.

[Daffynition]

[Viennacon]

I’m sure the Norks are dancing in the street...

because if they don’t, next stop, labor camp.

[Daffynition]

Maybe they'll be able to pay the light bill now.

[Viennacon]

I loled. :p

[DesertRhino]

Like it would ever get paid anyway. The only way it would get paid, would be if the Norks got it from us, after we borrowed it from the Chinese.

[Don Corleone]

The quid pro quo for that deal must be unbelievable.

[Daffynition]

Something is up his sleeve. Perhaps he senses the unrest in Asia and feels need for another ally.

[hinckley buzzard]

Russia probably figures they have little to lose. After all, how much can the NoKorean currency be worth these days? This debt btw is likely to date to the Korean War.

[Daffynition]

The $11 billion figure was reached by using the Soviet conversion rate of 67 kopecks to the dollar, the ministry said, which at today’s exchange rate would make the debt just $238 million. Russia has reached similar agreements over the years with many former Soviet-clients in larger part because there was little chance the loans would ever be repaid.

Another billion is going to be used for building infrastructure.