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To: Alex who wrote (14048)	7/2/1998 6:08:00 AM
From: Jaakko	Read Replies (1) \| Respond to of 116791

There seem to have been a successful hike in silver price over night...followed by unsuccessful bear-raids on gold and silver...Kitco gold discussion line is jammed...does anybody have any news on possible causes????

To: Alex who wrote (14048)	7/2/1998 6:33:00 PM
From: goldsnow	Respond to of 116791

Russia woos IMF with austere tax reforms By Alan Philps in Moscow THE Russian Prime Minister, Sergei Kiriyenko, presented a drastic belt-tightening package to parliament yesterday, and threatened to resign if his plan failed to resolve the deepening economic crisis. In a speech to a generally sceptical lower house of parliament, Mr Kiriyenko, 35, hammered home the message that Russia was crushed by a mountain of debt and had to start living within its means by cutting budget spending and raising tax revenues. He is demanding that parliament should pass a package of more than 20 measures before it breaks for the summer in two weeks. Russians had to realise, he said, that they were living in the era of free markets, when a strong state depended on strong finances. He said to the State Duma: "Let us work together. To do nothing is also a decision in itself, with very serious consequences." The anti-crisis package is necessary to persuade the International Monetary Fund to provide a œ10 billion stabilisation loan to fight off speculative attacks on the Russian currency, the rouble, the value of which the government has pledged to defend at all costs. Answering a question from the floor after his speech, the young Prime Minister agreed that he would quit if his recipe failed to revive the faltering economy. He said: "If you think it will resolve the situation, then the government is ready to resign." He proposed shifting the tax burden away from industry, which is stifled by a welter of levies, and on to consumers by raising sales taxes. He said indirect taxes were the only answer to massive income tax dodging. He said: "Money that has been honestly or dishonestly earned is spent sooner or later and you cannot hide from the sales tax." At the same time, he pledged to close the loopholes enabling the better-off to avoid taxes. To encourage honesty, he is cutting the top rate of income tax from 35 to 30 per cent. In an effort to revive industry, tariffs for gas, electricity and transport are being slashed, while incentives are to be offered to utility customers who pay on time. More revenue is to be raised from vodka taxes and gaming licences. Mr Kiriyenko said there was no alternative to tough measures to raise tax revenue, including bankrupting non-payers, if the backlog of wages to miners and teachers was to be cleared. He said: "We cannot have a double standard. We all feel sorry for the pensioners and coal miners; but we forget about this the moment government starts taking tough measures against non-payers." After the first signs of growth in 1997, the economy had shrunk in the first five months of this year by 0.2 per cent. His goal was to balance the budget by Nov 1, requiring him to bridge a monthly deficit of œ400 million. But Mr Kiriyenko's timetable for a return to sustainable growth was gloomy: only after 18 months to two years. The Communists, who dominate the Duma, said they would vote for some of the legislation, including lowering taxes and encouraging industry. But they are pressing for a reflation package, which is out of the question while Western financiers have lost confidence in Russia's ability to live within its means. The Duma is to have a special session next week that will allow at least some of the Bills to be passed. Mr Kiriyenko's message that the market is supreme will please the negotiators from the IMF. But Russian markets barely reacted to the speech, waiting instead for the expected international bail-out package. Labour militancy is again on the rise, with miners in the Siberian Kemerovo region cutting the Trans-Siberian Railway to press their demand for back pay, following the failure of the government to honour promises made in May to solve their problems. President Yeltsin cancelled the construction of a œ5 billion high-speed railway between Moscow and St Petersburg yesterday. Builders planned to raise the money through loans and a share flotation, but environmentalists opposed the project. telegraph.co.uk

To: Alex who wrote (14048)	7/2/1998 6:35:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116791

IMF warns of need for cash to aid Asia and Russia MICHEL Camdessus, managing director of the International Monetary Fund, warned yesterday that the fund will need more money to help deal with the economic crises in Asia and Russia. His plea came as the Russian Duma approved nine bills last night as part of an economic reform package which is a pre-condition to receiving any new funding from the IMF, in addition to the $10 billion loan already being paid out. Mr Camdessus said that having paid out about $80 billion as part of rescue packages in Asia, the IMF was dangerously short of funds and if Russia did require another loan of up to $15 billion the IMF would have to "launch its lifeboat". This was a reference to the general arrangements to borrow, agreed in the early 1960s by the G10 countries, including Britain and the United States, to provide the IMF with additional emergency funds worth about $24 billion. The arrangements can be activated only by the managing director with the approval of the G10. It has not been used since the late 1970s when Britain required an IMF loan at the same time as the US, and Italy also needed funds. Mr Camdessus said that whether the arrangement was activated depended on the US Congress, which is holding up additional funding for the IMF. telegraph.co.uk