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Russian Bonds: Settlement Of Claims

Volume 489: debated on Thursday 29 October 1987

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asked Her Majesty's Government:What progress is being made in implementing the Foreign Compensation (Union of Soviet Socialist Republics) (Distribution) Order 1987.

Excellent progress is being made. Of the 4,582 bond claims submitted to the Foreign Compensation Commission, 3,265 (71·3per cent.) had already been registered by 9th October; 304 claims (6·6 per cent.) had been withdrawn by the claimants; 204 claims (4·5 per cent.) had been refused registration because the claims did not meet the terms of the order, and 810 claims (17·7 per cent.) remained to be registered (or rejected). Of the 2,308 property claims, 1,667 claims had been matched against claims on the Register of Russian claims. Six hundred and forty-one claims are currently unmatched, although some of these could turn out to be valid.As a result, my right honourable and learned friend the Secretary of State has directed that the Foreign Compensation Commission should on 30th October make an interim payment of 10 per cent. of the value assigned to a bond to all persons whose claim in respect of a bond had been registered on 9th October and that a like payment should be made as soon as possible thereafter to those whose claims in respect of bonds were registered after 9th October. This is the most substantial interim payment ever made by the Foreign Compensation Commission.Evaluation of property claims, where the commission must exercise its judicial discretion, is more complex. But the commission is making every effort to expedite the process with the objective of making a final payment to all claimants in 1989.