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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 (474)	8/20/1998 6:41:00 PM
From: Real Man	Respond to of 1301

But the most likely president (so far) is Luzhkov - Moscow Mayor. Russia just loaned itself $29-36 billion. Russia Sees $36B Debt Saving, Redrafts Budget MOSCOW -- (Reuters) Russia's government on Thursday approved a debt restructure to save it 200-250 billion rubles ($29-$36 billion) over the next 18 months and decided to redraft its 1999 budget to account for the savings, news agencies said. But Prime Minister Sergei Kiriyenko told Russian television the budget would be drawn up "under the most pessimistic scenario" after the debt overhaul and a financial crisis that has virtually cut off access to finance from the markets. Itar-Tass news agency said a government meeting approved two federal bills on the restructure of GKO t-bills and OFZ bonds, the exact terms of which have not yet been released but, as earlier announced, will be repaid with new paper. Tass quoted Finance Minister Mikhail Zadornov as saying that if laws on the restructure were not approved by the end of the year, then the government would have to repay 113 billion rubles this year and 260 billion rubles next year. If the restructuring was approved, the government would have to pay just 14-30 billion rubles this year and 44-80 billion rubles next year, depending on what kind of plan was approved. Tass quoted Prime Minister Sergei Kiriyenko as saying that the restructuring would save the government 200-250 billion rubles in the next 18 months and 80 billion by the end of 1998. The government also decided to redraft the 1999 budget to account for the savings and the effect of the crisis measures adopted on Monday, which included the debt scheme, a 90-day moratorium on debt payments and an effective ruble devaluation. Interfax quoted Kiriyenko as saying the redrafted budget would be adopted by the government on Sept. 7 and handed to the Duma, parliament's lower house, on Sept. 21. The premier said the government was being as pessimistic as possible in the new draft, taking into account the negative effects for Russia's ability to raise finance from international markets after the forced debt swap. "We are calculating the budget of 1998 and 1999 under the most pessimistic scenario," he told Russian television. ( (c) 1998 Reuters)