08/25/1998 19:54:06 Text of Russian debt restructuring plan
MOSCOW, Aug 25 (Reuters) - Russia on Tuesday released
details of an eagerly-awaited restructuring plan for the
country's short-term domestic debt.
The following is a translation of the text of the plan,
issued by the Russian government. The translation was done by
Reuters and is not an official translation.
"This Ruling outlines the conditions for redeeming state
short-term, non-coupon bonds [GKO] and federal bonds with fixed
and floating coupons [OFZ] with a maturity date of December 31,
1999 and issued before August 17, 1998 (henceforth, the
redeemable bonds) and the reinvestment of the funds received
from their repayment in other state securities or certificates
of deposit of the State Savings Bank of the Russian Federation
1. Buy-sell operations with the redeemable bonds are to be
suspended until the moment of their redemption.
2. The Finance Ministry of the Russian Federation shall
repay the redeemable bonds within the period set at their issue
and in accordance with "depo" account records on August 17,
1998 by transferring funds to special "transit" accounts of the
holders of the securities.
3. Funds from the special transit accounts can be
reinvested at the discretion of the owner for the acquisition
in equal portions of three new issues of state securities in
the currency of the Russian Federation:
with a three-year maturity and coupon - 30 percent annual
with a four-year maturity and coupon in the first, second
and third years -- 30 percent, in the fourth year 25 percent
with a five-year maturity and coupon in the first, second
and third year -- 30 percent, the fourth year 25 percent and
the fifth year 20 percent a year and also certificates of
deposit of the Russian State Savings Bank, issued according to
point five of the Ruling.