Russia has paid back its first one-billion-dollar (1.14-billion-euro) five-year euro bond loan in full and on time, the finance ministry said Tuesday.
Analsysts said that as a result Russia's standing on international financial markets has been considerably enhanced.
"The fact that Russia can reimburse its loan without needing to re-finance the debt is a very positive development," noted one Western economist.
According to the investment firm Aton, international ratings agencies could now rapidly upgrade Russia's sovereign rating from B to B-plus or even BB-minus.
Most analysts here are of the opinion that Russia has been under-rated.
Russia's image took a knock in August 1998 when authorities here decided to freeze internal debt repayments, imposing losses in the billions of dollars on foreign investors.
Russia now faces loan deadlines in April 2003, for 750 billion lire, June 2003, 1.25 billion dollars, and March 2004, for two billion marks – Moscow (AFP)
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