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To: Bobby Yellin who wrote (16371)	8/22/1998 11:00:00 AM
From: goldsnow	Respond to of 116825

Waigel sees no risk from Russia for German budget 07:02 a.m. Aug 22, 1998 Eastern FRANKFURT, Aug 22 (Reuters) - German Finance Minister Theo Waigel said on Saturday that the Russian crisis posed no risk for the German public finances. Waigel told ''Welt am Sonntag'' newspaper that Russia had made clear that it would meet its debt servicing obligations. Germany is Russia's biggest trading partner and lender and has watched with concern the deepening of Moscow's financial woes. On Monday Russia let its rouble float downwards, and set a moratorium on some foreign debt. On Friday Prime Minister Sergei Kiryienko unsettled markets with his warning that the crisis might be only entering its worst phase. The developments stirred concerns that Russia could default on its debt, including billions marks in loans covered by Germany's Hermes export credit guarantee programme. Waigel stressed Russia still held the key to a succesful recovery and should put its tax system in order and continue economic reforms. He added that international help should be closely linked to the progress of reforms. ''It is decisive for international money, in particular from the International Monetary Fund, to be given step by step as reforms are implemented so we are not sowing seeds on frozen ground,'' the newspaper quoted Waigel as saying in an advance summary of its Sunday edition. Waigel also said that Chancellor Helmut Kohl had an important role to play during the Russian crisis when the United States were preoccupied with own problems. Kohl is due to speak to Russian President Boris Yeltsin by telephone later on Saturday afternoon and said he would urge a prompt implementation of economic reforms. ''My first advice for him is: you must really carry through the reforms in economic laws and tax laws that you have promised,'' Kohl said according to an advance text of an interview for ZDF TV channel, scheduled to be broadcast on Sunday. Speaking about the 1998 economic outlook, Waigel said he expected the German economy to grow by about three percent provided that the situation on the international financial markets does not deteriorate as a result of Russia and Asia. He also expected inflation of about one percent. ((Frankfurt Newsroom +49 69 756525, frankfurt.newsroom+reuters.com)) Copyright 1998 Reuters Limited.

To: Bobby Yellin who wrote (16371)	8/22/1998 11:38:00 AM
From: goldsnow	Respond to of 116825

U.S. pays part share of Russia IMF loan, data show WASHINGTON, Aug 21 (Reuters) - The U.S. Treasury paid $483 million to the International Monetary Fund last month, the first portion of its share of part of an $11.2 billion loan to Russia, according to data released on Friday. The money, listed in Treasury's monthly statement, is for a U.S. contribution to the IMF's General Arrangements to Borrow, the fund's main emergency lending facility. The GAB facility is being used -- for the first time in 20 years -- to fund part of the Russia loan because regular IMF resources are too small. IMF reserves have been drained by rescue deals in Asia and the U.S. Congress has balked at providing the $18 billion the administration is seeking to stock resources up again. The GAB, using money pledged by 11 of the world's richest states, is the fund's emergency borrowing facility. Officials describe it as their ''reserve tank.'' IMF documents released when the loan was approved said the IMF would tap the GAB to the tune of $8.3 billion to find the money promised to Russia. The total U.S. contribution will be $2.1 billion, but the money will be paid in stages as Russia receives IMF cash. Russia, now the IMF's biggest borrower, received $4.8 billion when the loan was approved last month and could receive a further $4.3 billion in September if the IMF approves of government policies in the meantime. But Washington's claim is on the IMF, not on Russia itself, as is the case for loans from regular IMF resources. Russian chief debt negotiator Anatoly Chubais said on Friday that Russia would meet IMF targets on tax collection and budget spending. The fund, clearly upset at a Russian decision last week which effectively devalued the rouble and defaulted on some foreign debt, has given no indication of whether it will pay. biz.yahoo.com