Berlin unsure what Russian debt deal will raise

25th June 2004, Comments 0 comments

25 June 2004 , BERLIN - A German Finance Ministry official on Friday deflected reports that packaging and selling Russian debt to Germany as securities would raise EUR five billion.

25 June 2004

BERLIN - A German Finance Ministry official on Friday deflected reports that packaging and selling Russian debt to Germany as securities would raise EUR five billion.

Joerg Mueller, a finance ministry spokesman, said nobody could say how much the securitisation of Russian debt would raise until after the bonds had been sold.

Media reports say anywhere from EUR 1.5 billion to EUR five billion would likely be raised by the floatation.

Mueller said funds would flow into Germany’s 2004 budget which is expected to have a EUR 40 billion  deficit this year pushing Berlin over the eurozone deficit limit for a third year in a row.

Germany is Russia’s biggest creditor in the Paris Club of creditor nations and Moscow says it owes Germany about EUR 20 billion.


DPA

Subject: German news

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