The U.S. is in Russia's corner:
(Adds Camdessus)
By Adam Entous
WASHINGTON, July 10 (Reuters) - The United States prodded the International Monetary Fund on Friday to speed a new
loan package to Russia to shore up its battered economy and protect the ailing ruble.
''It's time ... for these negotiations to come to closure,'' White House spokesman Mike McCurry told a news briefing after
President Bill Clinton and Russian President Boris Yeltsin spoke by telephone about the state of the Russian economy and the
proposed loan package.
Russia is seeking $10 billion to $15 billion from the IMF, the World Bank and other sources to help it cope with a financial
crisis.
McCurry said Clinton was confident that Yeltsin's government was determined to carry out promised reforms and that the
IMF package, once in place, would help to calm financial markets.
''What would most reassure the financial markets and the investing community and the community in the United States would
be to see a successful conclusion of these discussions between the IMF and the Russian government,'' McCurry said.
Yeltsin reached out to Washington to shore up support as the Russian government and the IMF moved closer to an agreement
that would give Moscow the money to cope with its financial crisis.
Before talking to Clinton, Yeltsin had already spoken by telephone with German Chancellor Helmut Kohl, French President
Jacques Chirac and British Prime Minister Tony Blair.
''They discussed the situation on world financial markets and implementation of a program of anti-crisis measures by the
Russian government,'' a Kremlin statement said.
Yeltsin also spoke with the head of the IMF, Michel Camdessus.
The Kremlin said Camdessus had praised Russia's recent anti-crisis program.
''Camdessus showed he is convinced the implementation of this program in full and in a short period of time will help Russia
successfully overcome the present uneasy situation and will find understanding in the international financial community.''
Russian markets, optimistic about the IMF talks, rallied on Friday, with shares climbing 7 percent.
Russian debt negotiator Anatoly Chubais told The Wall Street Journal he expected a preliminary deal on new IMF credits by
Saturday. John Odling-Smee, head of the IMF department dealing with Russia and other former Soviet republics, arrived in
Moscow to take part in the loan talks.
Yeltsin decided to stay in Moscow next week, putting off his summer holiday in the Karelian lake land.
McCurry said negotiators had no time to waste because of the ''urgency of the situation.''
He urged the IMF to set lending conditions that the Russian government would be able to meet.
''The United States government certainly agrees that Russia needs an IMF program that works, one that the Russian
government is both capable of implementing and that addresses the country's most pressing financial and structural problems,''
McCurry said.
Asked if the United States trusted Russia to carry out promised economic reforms, McCurry said, ''We have a high degree of
confidence in their determination to do this.''
The Clinton administration said it would support the Russian package through the IMF and the World Bank rather than
provide direct financial assistance.
''We've indicated and would reiterate now that we have talked about our participation in assistance being given by
international financial institutions, principally through the IMF,'' McCurry said.
Russian stock and bond markets have fallen sharply in recent weeks as investors pulled out funds amid concerns over the
government's ability to meet its short-term debt-servicing requirements and over the possibility of a devaluation in the currency,
the ruble.
The Russian government says it will meet all its debt obligations and has no plans to devalue the ruble.
The government has for years battled low tax revenues and a vicious circle of nonpayment between enterprises, leading to
delays of many months in paying millions of workers.
The crisis has become especially acute because of Asia's financial problems. |
