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Strategies & Market Trends : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?

To: Manfred Sondermann who wrote (117)	5/14/1998 8:41:00 AM
From: Thomas Haegin	Read Replies (1) \| Respond to of 1301

Guten Tag Manfred, << How do you think will Russia solve this problems? >> The biggest problem for Russia is collecting taxes and enforcing the (tax) laws. Of course, the present tax code is too complicated and not transparent. A new one is in the making, should get to Duma for discussions in late May or June. Hopefully things will get a better then. Grsse, Thomas

To: Manfred Sondermann who wrote (117)	5/14/1998 12:16:00 PM
From: Real Man	Read Replies (1) \| Respond to of 1301

You are right, they might have to devalue the ruble because of the mounting debt problem. The central bank was using oil money to control the ruble. Now the government has sold a lot of state property, and will have to rely on Taxes. If it runs out of that money, the ruble will shoot up. This will for sure create unrest, which could lead to a change of power, hopefully peaceful (2000 elections). Return of communists will be an option. The problem is that the Duma is a bunch of people who don't understand that there is no money and that they have to pass the Tax law quickly. They do understand the word "cuts", however, to which they object. Besides, they don't really care, and the majority would like if the government fails to achieve its goals. The government, however, looks very competent right now. It won't be easy, though. -Vi