RUSSIA: ANATOLY CHUBAIS MEETS WORLD BANK & IMF OFFICIALS

(9 Jul 1998) Eng/Russ/Nat

Russia held a key round of talks with international lenders on Thursday, in an effort to secure a loan that could help stabilise the country's economy.

Russia is looking for 10 to 15 (b) billion U-S dollars in new loans to restore confidence in its financial markets, which have been in a tailspin for months.

Anatoly Chubais, Russia's representative in the talks, met officials from both the World Bank and the International Monetary Fund (I-M-F) on Thursday.

He said the negotiations were in a "decisive" stage and the parties agree on the broad outline of a bail-out package.

SOUNDBITE: (Russian)
"We will draw up the plan to be presented to the Russian government which will in turn present the to the I-M-F, who will pass it on to its headquarters in Washington. And then by the start of next week we hope to have a signature on the loan agreement."
SUPER CAPTION: Anatoly Chubais, Russia's representative

The Russian government would like a loan as soon as possible to deal with a wide range of problems.

Millions of workers have waited months for their salaries and labour unrest is on the rise.

The Russian stock market has fallen by more than half so far this year, and foreign investors are withdrawing their business.

Officials said the talks focused on a structural adjustment loan from the World Bank that would give the Russian government 600 to 800 (m) million U-S dollars in budget support to help appease the financial crisis.

SOUNDBITE: (English):
"As far as the bank is concerned of course we are discussing a number of structural areas where we will be focusing our support."
SUPER CAPTION: Michael Carter, World Bank representative in Moscow

However, the I-M-F and the World Bank may be reluctant to finalise any loan deal until Russia's parliament approves an economic stabilisation package.

The plan has been proposed by President Boris Yeltsin's administration.

Parliament's lower house is not scheduled to meet again until July 15 and the Communists and other opposition members have strong reservations about measures that would raise taxes.

Russia's government has chronic problems in collecting taxes, and the I-M-F has on several occasions withheld money on an existing loan because the government has not been able to raise sufficient revenues.

Russia's Anatoly Chubais plans to hold talks with the I-M-F on Friday.

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