"The economic expediency of the soonest debt repayment is obvious," the head of state said at a meeting with Russian Finance Minister Alexei Kudrin.
According to the minister, as of the beginning of 2005 Russia's foreign debt totaled $115 billion.
The average debt service rate is 7-13%, he added.
"This debt was borrowed in the hard times for Russia. A part of it was borrowed by the USSR and another part - in the 1990s," the finance minister said.
In his words, the last borrowings were made in 1997 and 1998.
"This debt is 'expensive' and its service is three-four times higher than debt service in G8 countries," Mr. Kudrin said.
He reported to the President that the work on the three-year budget for 2006-2008 had begun.
In his opinion, the use of this plan "will considerably increase the efficiency of expenses because all institutions will know how the finances will be used in the next three years."
Alexei Kudrin believes that the parameters of this budget should not be changed.
