MOSCOW, June 17 (AFP) - Russia's leading reformer, Anatoly
Chubais, emerged Wednesday as a top candidate for a key new post
designed to boost ties with the international financial institutions
from which Moscow is desperately seeking support.
Prime Minister Sergei Kiriyenko said Chubais was "one of the
most likely" candidates for the new job of special presidential
representative to such institutions as the IMF and World Bank.
"The introduction of the post of special representative is
essential for coordinating the activities of all branches of power
in matters of interaction with international financial
organisations," Kiriyenko told an economic forum of former Soviet
republics in St Petersburg, according to Interfax.
The new job will carry the equivalent rank of deputy prime
minister, Russian agencies reported, although Kiriyenko said the
actual structure of the government would not change.
He said President Boris Yeltsin would take a final decision on
whom to appoint to the go-between job, which Moscow wants to set up
to boost efforts to drum up loans from abroad to ease the
government's chronic cash crisis.
The news that Chubais could be returning to the corridors of
power after being sacked from the government in March initially gave
Russian equities a boost, though stocks were flat in early afternoon
trading.
Traders said that appointing Chubais to the role would not only
add further credibility to the cabinet, but would also help Moscow
in its desperate bid to drum up foreign loans to ease its cash
crisis.
"Chubais is well-known overseas and is perceived as a pro-reform
person who puts his money where his mouth is," said Rinako Plus
trader Alex Gorelik.
"Typical Russia politicians talk about things and do nothing,
but Chubais has a track record of getting things done," he added.
"He is a no-nonsense figure who is trusted overseas."
Chubais built up strong relations with top western financial
officials during two stints in government between 1992 and 1997.
Despite being dumped from the government in March, he travelled
to Washington late last month to draw on his top-level contacts in
the IMF and World Bank as Russia's financial system teetered on the
brink of collapse.
Russian stock prices fell by 40 percent in May alone and bond
yields rose strongly as fears over a hole in the budget and mounting
government debt triggered an outflow of capital and confidence.
Traders said on Tuesday that stocks were also drawing
encouragement from an upcoming IMF mission to Moscow which will
begin considering a fresh aid package for Russia.
Observers believe the market slump will not be reversed until
more substantial funds began flowing into the public coffers, either
through privatisations or through a special international loan to
help the Russian government deal with the continuing financial
turmoil. |
