Russia and Laos have signed a memorandum on mutual settlement of debts on earlier provided loans, Russian Prime Minister Mikhail Kasyanov announced following the talks with his Laotian counterpart Boungnang Volachit.
According to the memorandum, Russia writes off 70 per cent of the Laotian debt, and the rest of the sum, $380 million, Laos will pay in roubles during 33 years under a favourable interest rate, Kasyanov said.
The reason for this decision was that "in the international classification Laos is ranked among the countries with the least developed economies, and also special relations between the two countries," the Prime Minister explained.
For the time being, one needs to finish the construction of the section that is 100 kilometres long. On October 17, German Foreign Minister Heiko Maas said in an interview with RND that the project would be completed