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Russia writes off Guinea-Bissau's $26.7 mln debt — agreement

Guinea-Bissau pays 62% of the debt for the work of the diplomatic mission in installments in accordance with the repayment schedule

MOSCOW, March 19. /TASS/. Russia has written off Guinea-Bissau’s $26.7 mln debt, while another $940,000 debt will be restructured, according to two relevant agreements between the countries that have been published on the legal information portal.

The first agreement concerns the debt of $25.1 mln under a 2001 agreement that covered previous liabilities and $1.5 million for the rent of premises for the embassy in Moscow. Russia is completely writing off loans and interest on them, as well as 38% of rental debt.

Guinea-Bissau pays 62% of the debt for the work of the diplomatic mission in installments in accordance with the repayment schedule. The interest charged on the amount is 2% per annum. As noted in the annex to the agreement, the republic allocated funds during 2011-2017. Including interest, the amount payable is $1 million.

The second document concerns a $960,000 debt. Russia is writing off the entire debt, as well as interest accrued since 2010 but not yet paid.

Guinea-Bissau undertakes to finance projects with this amount that will increase the population’s access to vital resources, strengthen national health care and education, and ensure the supply of socially important goods. The Guinean side selects companies participating in projects based on a competition. Russian companies should be provided with no less favorable conditions than local and others.

The Ministry Finance of Guinea-Bissau undertakes, no later than January 31 of each year, to send a notification to the Russian Finance Ministry about the use of funds for such projects, after which Moscow will write off the specified amounts. Settlements are carried out between VEB.RF and the Finance Ministry of Guinea-Bissau.

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