22 Nov 2017 16:01

Kazakh Majilis approves agreement on re-restructuring of Georgia's debt

ASTANA. Nov 22 (Interfax) - The Majilis of Kazakhstan's parliament ratified a re-structuring agreement on Georgia's loan debt to Kazakhstan on Wednesday.

"Georgia's debt to Kazakhstan amounts to $27.774 million, which was generated in 1992-1993 as a result of mutual settlements between the central banks of the two countries and later was subject to repayment as a state loan debt," Minister of Finance Bakhyt Sultanov said in the Majilis.

The agreement on the second re-restructuring suggests that Georgia should pay off debt to Kazakhstan on the following terms: Georgia's principal debt is reduced by $2.3 million, while the interest rate will remain at 4% per annum. The payment schedule will include no penalty for delays, and prolongation will occur according to Paris Club terms.

"In accordance with the agreement from 2017, the amount due is set at $37.997 million in 2017-2025," Sultanov said.