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To: long-gone who wrote (23828)12/4/1998 7:26:00 PM
From: goldsnow  Read Replies (1) | Respond to of 116764
 
Full story
INTERVIEW-Kremlin aide warns of
''social explosion''
08:19 a.m. Dec 04, 1998 Eastern

By Adam Tanner

MOSCOW, Dec 4 (Reuters) - A top Kremlin aide
said on Friday that Russia needs more international
credits so it can focus its resources on preventing
social unrest.

''It is completely clear that the amounts Russia is
supposed to pay off in 1999 are much higher than the
government's ability,'' the president's deputy chief of
staff Oleg Sysuyev said in an interview.

''Therefore we must think of new credits to fulfill our
government's major obligation, that of covering its
social expenses to bar a social explosion.''

The International Monetary Fund's Managing Director
Michel Camdessus visited Moscow this week and
said the IMF could come to prompt agreements in
many areas with Prime Minister Yevgeny Primakov's
government, but he made no firm commitment to
future lending.

The Russian government said it would draft a
medium-term economic programme by January and
discuss it then with another IMF mission,

Asked if Russia's message was 'give us money or
expect a social explosion', Sysuyev said: ''We are
already used to hearing terrible stories....We are
saying a stable, developing Russia with a normal
economy is in the interest of all countries.''

The IMF has held off giving billions of dollars more in
previously promised loans because of lingering
concerns about the reform cabinet's economic plans
and, more fundamentally, on fears it might abandon
market reforms.

A prominent member of the opposition Communist
Party on Thursday hit back at the IMF, which is
deeply mistrusted by Communists and nationalists. He
said Russia should break with the Fund.

''I would settle accounts with the IMF and say
'Thank you','' said Gennady Seleznyov, speaker of the
State Duma, the lower house of parliament. ''We
have to get these shackles off Russia's legs.''

Sysuyev said the Kremlin still felt more credits were
needed to help Russia during a time of economic
instability.

''Even if we now decided to get on without the help
of international financial institutions -- and this is
hardly possible -- we would still have to think as
orderly people that we owe these institutions
significant sums and we must pay these amounts,'' he
said.

''The integration of all countries on our planet is such
that it is unlikely that we can decline further
cooperation with these financial institutions in the
future, even if the situation in our country is positive,''
he continued.

Copyright 1998 Reuters Limited.