Russian government approves 700 million rouble credit to Abkhazia

At a session on Monday, the presidium of the Russian government approved granting a 700 million rouble credit to Abkhazia to capitalise the republic's banks, announced the head of the Ministry of Economy and Development, Elvirs Nabiulina. "The credit will be disbursed in two tranches, 300 and 400 million roubles, at an annual rate of 2.5%," said Putin's press secretary, Dmitry Peskov. In case of payment arrears the rate will be 10%, he added. The credit is to be granted in 2010, reports RIA-NOVOSTI.