September 18, 2012
Russia has signed a compact with North Korea that will write off 90 percent of the debt the DPRK has accrued since the Cold War, and will reinvest the remaining 10 percent back in the reclusive Asian country.
The total debt forgiven is approximately $11 billion.
Negotiations have been ongoing throughout the last four years, but have not yielded any result until now, according to the Russian news outlet RIA Novosti.
Analysts expect that the deal will help spur new energy projects, infrastructure investment, and the development of new railroads and power lines in the worlds poorest country.
The deal could also help pave the way for a new gas pipeline, that could possibly run through North Korea and help supply the Asian market.
This article was posted: Tuesday, September 18, 2012 at 6:48 am