MINSK, June 23 (RIA Novosti) - President Vladimir Putin said Friday that Russia did not need to resort to foreign borrowing to tackle its social programs any longer, thanks to the dynamic growth of the national economy.
Speaking to reporters following a summit meeting of the post-Soviet Collective Security Treaty Organization, Putin said: "Today, Russia does not need to resort to foreign borrowings to resolve its social problems, as it can rely on growing opportunities being provided by the national economy."
Putin added that the former Soviet Union had obtained major loans in the 1980s to tackle social problems under tough conditions.
Russia is set to repay all of its Soviet-era debt worth $22.3 billion to the Paris Club of Creditor Nations by August 21.
The president said paying off Russia's debt to the Paris Club ahead of schedule would save the country $7 billion, of which $1 billion would be saved this year.
The government made the decision on early repayment for economic reasons, Putin said. "Early repayment frees us of the need to pay interest," he added.
The president said, "We confirm our readiness for further cooperation... in the financial sphere with all countries, and international organizations, on an equal basis."
Russia recognized the Soviet Union's foreign debt in 1993 and joined the club of creditor nations in 1997. In 2005, the country made the largest transaction in the club's history, repaying $15 billion.
