MOSCOW, Dec 18 (Hina) - Croatian Economy Minister on Friday said +prospects to settle Russia's clearing debt to Croatia were good and +that it was almost certain the debt would not be included in the +succession mass of the former
Yugoslav federation.+ Porges is visiting the Russian capital as part of a high-ranking +Croatian delegation. He discussed the former Soviet Union's debt to +the former Yugoslavia with Russian counterpart Andrej +Sapovljanec.+ "I think we are on a very good path to resolve the problem", Porges +told reporters.+ Four of five successor states to the former Yugoslav federation, +Croatia, Macedonia, Bosnia-Herzegovina, and Slovenia, have +suggested that Russia's debt be distributed to each of the +successor states according to criteria of the International +Monetary Fund. Each country would sign a separate agreement with +Russia.+ According to
MOSCOW, Dec 18 (Hina) - Croatian Economy Minister on Friday said
prospects to settle Russia's clearing debt to Croatia were good and
that it was almost certain the debt would not be included in the
succession mass of the former Yugoslav federation.
Porges is visiting the Russian capital as part of a high-ranking
Croatian delegation. He discussed the former Soviet Union's debt to
the former Yugoslavia with Russian counterpart Andrej
Sapovljanec.
"I think we are on a very good path to resolve the problem", Porges
told reporters.
Four of five successor states to the former Yugoslav federation,
Croatia, Macedonia, Bosnia-Herzegovina, and Slovenia, have
suggested that Russia's debt be distributed to each of the
successor states according to criteria of the International
Monetary Fund. Each country would sign a separate agreement with
Russia.
According to IMF criteria, each successor state is entitled to part
of the Russian debt corresponding to the state's share in the gross
national product of the former Yugoslav federation.
Croatia would thus be entitled to 28.49 percent, or several hundred
million dollars.
This proposal was however vehemently opposed by the Federal
Republic of Yugoslavia, the fifth successor, which claims the
Russian debt must be included in the former Yugoslavia's succession
mass.
"It is almost certain that the clearing debt will not be part of the
succession mass," said Porges.
Russia's undisputed debt to former Yugoslav countries amounts to
some US$1.5 billion.
Porges and Sapovljanec recently agreed in Moscow only half the
amount would be settled at first.
Given Russia's current financial and economic crisis, it is almost
certain that Russia can and will not return the debt in money.
Croatia suggested the debt be returned in oil and gas.
The director of Croatia's oil giant INA, Davor Stern, on Friday told
Hina it was difficult to expect Russia would settle the debt with
oil, given that for Russia, oil equalled cash money.
INA has suggested that Russia pay to Croatia the tax INA should pay
Russia for oil extracted on INA fields in Russia. Russia would
thereby settle part of its clearing debt.
Stern believes this solution to be perfectly acceptable for Russia,
given that it is financially neutral.
Economy Minister Porges said Croatia did not intend to leave the
Russian market despite Russia's crisis.
"Unlike those who leave this market because of temporary problems,
we encourage economic subjects, because (Russia's) is a
tremendously large, powerful, and promising market," Porges said.
(hina) ha