Скачать или смотреть RUSSIA: GOVERNMENT FIGHT TO AVOID CURRENCY COLLAPSE (2)

(28 May 1998) Russian/Nat

Russia is fighting hard to prop up the plunging ruble and avoid a currency collapse that could lead to an economic melt down.

On Thursday morning Boris Yeltsin addressed the nation to reconfirm the government's commitment to stabilising the markets.

He also announced there will be new fiscal controls, but that Russia had enough reserves to keep the currency markets under control.

Russian President Boris Yeltsin met with his Prime Minister, Finance Minister and bank chief to discuss the latest developments in Russia's battle to save the ruble.

Yeltsin was keen to prop up investor confidence.

SOUNDBITE: (Russian)
"Investors must be confident there will be no disintegration of Russia's financial market. This confidence would attract investors to the market. The central bank and Finance Ministry have enough resources to keep the ruble stable."
SUPER CAPTION: Boris Yeltsin, Russian President

But the measures don't stop there.

Yeltsin has announced that several officials will lose there jobs and that meetings with law-enforcement and fiscal authorities would draw up proposals for tougher control of the economy.

Perhaps along those lines, Prime Minister Sergey Kiriyenko reiterated again the importance of taxation.

SOUNDBITE: (Russian)
"The most important thing at the moment is that the state has the understanding that the country cannot live without collecting taxes."
SUPER CAPTION: Sergey Kiriyenko, Russian Prime Minister

Meanwhile, the new fiscal measures announced on Wednesday night appeared to have staved off the collapse of the country's financial markets.

On Thursday morning business at the Moscow Exchange was brisk as traders declared themselves satisfied with the Central Bank's intervention.

SOUNDBITE: (Russian)
"In the morning there was a crisis of faith in the government's ability to keep the ruble stable. But after the refinancing rate was raised the opposite happened as banks rushed to buy rubles."
SUPER CAPTION: Alexei Vlasov, President of the Russian Exchange

The Russian government is adamant that there will be no devaluation of the ruble.

Boris Yeltsin regards a stable currency as one of the main achievements of his seven years in office and is anxious that Russia not be seen as the next Indonesia.

SOUNDBITE: (Russian)
"The devaluation of the ruble would mean the breaking away from all accords with international organisations, the sharp exodus from Russia of foreign capital and the loss of all possible investments. It would be one of the worst scenarios for the Russian economy."
SUPER CAPTION: Alexei Vlasov, President of the Russian Exchange

But while Western investors are fleeing the market in droves, nothing approaching panic has taken hold of the streets of Moscow.

Money-exchange offices were quiet this morning and there have been no reports of Russians dumping rubles for precious dollars.

But average Russians are becoming increasingly concerned at the precarious state of the country's economy.

VOX POP: (Russian)
"They should do something so people's lives get better. But all they can do is talk. Where are the results?"
SUPER CAPTION: Nikolai

VOX POP: (Russian)
"We don't really understand what's going on but I think it's a minor catastrophe for the economy and the simple people don't like it."
SUPER CAPTION: Elena

With the Russian stock market reeling there is some doubt whether the country can restore confidence by itself.

Russian officials have sounded out the I-M-F for a rescue package of cut-rate loans.



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