Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: doormouse who wrote (279)	7/7/1998 9:22:00 PM
From: Rob Shilling	Read Replies (1) \| Respond to of 1301

So, is the crisis over ?? Somehow I doubt it is. An agreement in on all major points was made with the IMF and World bank for the financial aid Russia needs. Russia's end of the bargain is for the Duma to pass the legislation next week. But even if the Duma does not, Yeltsin says he is going to pass it using a presidential decree. The Ministry of Finance is almost sure it is going to get the loans in mid-August. For that reason they are selling what looks like to be special notes that come due in mid-August in order to refinance Wednesday's notes coming due. Also, the main need of the money is to add confidence to the financial markets and the money may not be used (just added to reserves to look good). So now that Russia is most likely getting this money that they don't need :) shouldn't the markets recover some ?? They recovered from a steep drop today on news about the IMF loan status. The Russian stock market continues to be confusing, It seems to drop 5% a day with good or bad news. Devaluation seems to be out of the question at all costs too. Also, something is bothering me. I read in the Russian financial press that the tax revenue shortfall has be $1.4 or so billion a year. However, with all the tax "policing" going on right now, it would seem that the Kremlin will soon have a surplus of cash on hand to start paying wage arrears and to refinance short term debt. Am I thinking correctly here ?? Somebody that may know, clue me in.