"Director Mikhail, our national debt amounts to just one hundred billion US dollars, and the government's stated goal is to pay off the debt as soon as possible. Now you suddenly want to issue two hundred billion in new national debt—can we really afford to repay this in the future?"
A committee member asked worriedly.
Russia still has a lot of debt inherited from the Former Soviet Era, most of which is held by members of the Paris Club and the London Club, essentially European investors.
Whether for pride or for the nation's reputation, even during the toughest economic periods in recent years, Russia has steadfastly repaid its debts, unwilling to default.
Once the national debt defaults, it's akin to the national reputation going bankrupt internationally, and the consequences of that are severe...
Thus, successive governments have aimed to clear the debts.
