Russian and domestic banks have been unable to reach an agreement for the rescheduling of Russia's debts.

Last December, Seoul and Moscow signed an agreement to postpone Russia's payment for defaulted loans accrued up to 1999 until the end of 2001.

Ten domestic banks, including Korea Development, Hanvit, Korea Exchange and Cho Hung Banks extended $ 1 billion in loans to the former Soviet Union in 1991 and Russia still owes in excess of $ 1.6 billion including unpaid interest. The creditor banks want the government to pay them $ 1.45 billion, the amount covered under government guarantees.