Russia extends payment term in Venezuelan debt

The Venezuelan State should repay US$2.8 billion within a three-year term

The Venezuelan State should repay US$2.8 billion within a three-year term
The Venezuelan State should repay US$2.8 billion within a three-year term

The Russian government has extended the payment term in relation to a debt contracted by the Venezuelan State totaling US$2.8 billion, as reported by Russian official news agency Ria Novosti.

Repayment will be made “within three years by means of equal operations that will be performed every half year on March 31 and September 30.” According to the breakdown, the first payment should be made on March 31, 2019, at a yearly rate of 8%; in the event of late payment, the rate would stand out at 12% annually.

The paper posted on the portal of legal information of the Russian government specifies that as of September 25, 2016, the debt is over USD 2.8 billion.

Earlier in June 2015, Russian President Vladímir Putin had extended until December 31, 2016, the reimbursement term of the loan granted to Venezuela.

By virtue of the inter-governmental agreement of December 8, 2011 and the related protocol dated June 9, 2012, Russia gave the loan to finance the supplies of Russian industrial products.