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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Mike Roberts who wrote (5966)	10/11/1998 8:04:00 AM
From: FawnVu	Read Replies (1) \| Respond to of 119973

It is in the Market Wrap with Bill Fleckenstein, www.stocksite.com... Also, a positive sign for the market tomorrow... U.S. Republicans say IMF deal within reach By Adam Entous WASHINGTON, Oct 10 (Reuters) - Top congressional Republicans said on Saturday they were near agreement with the White House on freeing up $18 billion for the International Monetary Fund to bail out the next wave of tottering economies. House of Representatives Majority leader Richard Armey, a Texas Republican, said negotiators were putting the final touches on what could be a compromise with the White House. ''They accepted the basic principles. I think the real fundamental thing is how rigorous will be the implementation,'' he said. Senate Majority Leader Trent Lott also said negotiations should be wrapped up quickly. ''I think we're pretty close to the language that we're going to put in the final package...The IMF conclusion might take five minutes,'' the Mississippi Republican told reporters. Details of the possible compromise were not immediately available. Republicans said earlier this week that they want the IMF to lend at market rates, slash loan maturities and publish detailed summaries of its secretive board meetings. But Armey said both Republicans and the White House were showing flexibility. The U.S. administration had warned Republicans that some of their demands would be impossible to implement at the IMF, which reports to 182 governments, not just the United States. But the White House is eager quickly to shore up confidence in the IMF's finances to tackle the global economic crisis, which has swept across Asia and Russia and thrown world financial markets into turmoil. Earlier on Saturday, White House Chief of Staff Erskine Bowles told reporters the administration objected to portions of the Republican reform plan, which was unveiled on Thursday. ''We still have some significant problems,'' he said. But congressional and White House negotiators were increasingly optimistic later in the day. ''There are some remaining issues, but I think they're very resolvable,'' said Rep. John Boehner of Ohio, a member of the House Republican leadership. The $18 billion requested by President Bill Clinton has already been approved by the Senate. But the money has been held up for months in the House, which has agreed to only $3.4 billion of the funding. Because of IMF rules, other countries are waiting for the United States, the fund's largest shareholder, to pay up before they chip in their share to replenish IMF coffers, drained by multibillion-dollar bailouts for Russia and three Asian states. Under the Republican plan unveiled earlier this week, IMF lending must be at market rates, adjusted for risk. If rates were increased, Republicans believe countries would have a new incentive to stick to sound economic policies, because it would be more expensive to turn to the IMF for a bailout. Republicans also demanded that no fund loan arrangement be for a period exceeding one year, to wean countries quickly off the IMF dole. But Armey said Republicans were willing to be more flexible on that demand. The Republican plan would require greater openness at the IMF, including public release of full written summaries of executive board meetings and internal IMF documents on loan agreements. The IMF already releases information about loans and annual country reviews, but board meetings are held behind closed-doors and the discussions are kept secret. The Republican proposal would also create an advisory commission to report to Congress on the future roles and responsibilities of the IMF, the World Bank, and the World Trade Organization. Bowles was expected to meet on Sunday with top Republicans to continue negotiations.