Seychelles signs debt settlement agreement with Russia
February 28, 2024
The Cabinet of Ministers has given its approval for the Ministry of Finance, National Planning and Trade to sign a debt settlement agreement with Russia.
The agreement will clear a loan dated back to 1980, for a sum of $6.6 million.
Following the agreement, Seychelles will settle the long standing debt of some $2.4 million, outstanding as of November 2008, with Russia.
Seychelles has benefited from a 35% upfront discount, plus additional reductions.
Under the settlement agreement, Seychelles will pay $1.9 million as a lump sum, which includes principal repayment and arrears on interest.
The outstanding balance will be paid over the next three years, up to 2027, and will be charged 4.5% capitalised interest.