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Moscow to bail-out Venezuela

Russia and Venezuela signed a debt restructuring deal on Wednesday allowing Caracas to make “minimal” payments to Moscow in the next six years to help it meet obligations to other creditors, the Russian Finance Ministry said. Under the deal, Venezuela will pay Russia back a total of €2.7 billion over a 10-year period, the ministry said.

Venezuela has public external debts of about $€127 billion, including €38 billion in government debt and another €38 billion of the state oil company PDVSA’s debt, according to the International Institute of Finance, an adviser to a group of U.S. and international holders of Venezuelan debt. The Russian Finance Ministry said on Wednesday the restructuring should free up more funds to allow Venezuela to develop its economy and “will improve the debtor’s payment ability, increasing the chances of all creditors to get their loans back.”

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