MOSCOW, Aug 21: Russia completed early repayment on Monday of more than $23.7 billion of Soviet-era debt owed to the Paris Club of creditor nations, underscoring the country’s new economic power.

“The sum of $23,737,038,657.61 has been transferred to the Paris Club of creditors,” Russia’s foreign trade bank, Vneshekonombank, said in a statement.

The repayment, which draws a line under Russia’s Soviet-era financial legacy, is the biggest in the 50-year history of the creditor group and a major source of pride in oil-rich Russia.

“We used to live with our hand held out for many years.... But now the Russian economy cannot only repay debts but do so ahead of time,” President Vladimir Putin said last month.

The early debt repayment underscores a remarkable turnaround in Russia’s financial fortunes, eight years after the government sparked a major financial and banking crisis by defaulting on debt payments.

Following the crisis, Russia’s public debt as a percentage of GDP rose to 96pc in 1999. That figure is set to go down to nine per cent this year, officials said.

“The economic rationale is quite strong... but there are also political reasons: it helps improve Russia’s image as a developed country,” said Yaroslav Lissovolik, an expert at the Deutsche UFG investment house in Moscow.

The Russian finance ministry said in a statement on Monday: “The early settling of accounts with creditor countries was made possible thanks to the growth of the economic and financial power of the Russian Federation.”

—AFP