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Russia may agree to cancel Afghanistan debt Aug. 6 - 1

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An agreement on cancelling Afghanistan's $11 billion Soviet-era debt to Russia may be signed on August 6, a source in the Russian Finance Ministry said Thursday.
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MOSCOW, August 2 (RIA Novosti) - An agreement on cancelling Afghanistan's $11 billion Soviet-era debt to Russia may be signed on August 6, a source in the Russian Finance Ministry said Thursday.

"Afghanistan's finance minister will visit Russia on August 6 to sign an agreement," the source said.

Russian Deputy Finance Minister Sergei Storchak said in April at a session of the International Monetary Fund and the World Bank that the sides would be able to sign an agreement on a large debt write-off.

Russia is expected to forgive 80-90% of Afghanistan's debt under agreements reached through the Paris Club of Creditor Nations in July, 2006.

Afghanistan's debt to the former Soviet Union, of which Russia is the legal successor state, was accrued largely from the delivery of Soviet weaponry to the country.

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