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

To: Real Man who wrote (378)	7/23/1998 1:36:00 PM
From: Real Man	Read Replies (1) \| Respond to of 1301

Note the level of the T-bill. Yields are much lower now - should be a boost for stocks. Chubais Expects Russia to Implement Anti-Crisis Plan LONDON -- (Reuters) Russia's chief loan negotiator Anatoly Chubais said on Wednesday he was optimistic that the government's anti-crisis program would be carried out. "It's a unique program. I do believe...we will be able to implement what they announced," Chubais told reporters at a meeting in London. Chubais, who also met with bankers in London earlier today, said the Russian government must boost tax collection quickly. "The main task for the government is to increase tax collection immediately." He said another challenge for the government was to cut interest rates and boost the economy. "An urgent problem is to diminish interest rates and restart economic growth," Chubais said. The government's current forecast for economic growth is zero in 1998. The key refinancing rate is at 80 percent but is now out of line with the benchmark one year treasury bill yield which is around 50 percent. Chubais said tax collection in June was 3 percent higher than in May but hoped July's tax collection would be "much greater than June." Commenting on the IMF package, Chubais said the government's anti-crisis package was key to securing the IMF loan. "Without it, I don't think we would have been able to reach a deal," he said. He said the IMF loan would be used mostly for strengthening the currency and central bank reserves. The IMF approved an $11.2 billion loan on Monday to help bail the country out of a financial crisis but handed over only $4.8 billion immediately, $800 million less than expected because of delays in implementing some agreed measures. The loan is part of a $22.6 billion rescue package to help bolster Russia's reserves and ease pressure on the ruble. Chubais reaffirmed that the government was planning to cut the budget deficit to 2.8 percent of the country's gross domestic product in 1999, from 5.6 percent in 1998. This is in line with targets laid out under the IMF agreement. Asked what would happen if the anti-crisis program was not implemented, Chubais replied: "If the program doesn't work, the IMF stops funding. We are in a simple situation, yes or no."