The Soviet-era debt to commercial lenders accrued as a result of the export of goods and services by foreign companies. The Russian Finance Ministry estimates the principal sum of this debt at more than $1.7 billion.
"The period of accepting creditors' letters of transmittal, the end of which was originally planned for 17:00 London time on November 3, is being extended to 17:00 London time on November 10, 2006," the ministry said.
Second-stage creditors' claims, totaling $720-$800 million as of September 15, will be swapped on the terms of the London Club of commercial lenders, i.e. for Eurobonds with a maturity in 2010 and 2030, and partially for cash.
The deadline for the closure of the debt conversion procedure has been extended from November 16 to November 28. During the period between the letter acceptance deadline and the closure deadline (November 10-28), Russia will issue securities to match the amount of the second-stage tranche, the ministry said.
The Finance Ministry swapped the first tranche of Russia's Soviet-era debt to commercial creditors for its Eurobonds in December 2002. Claims worth $1.28 billion were recognized for the swap, and as a result Russia's Eurobond issue totaled $1.37 billion.
