President Yeltsin has said Russia is to adopt tough tax rules to increase revenues and avoid a repetition of the latest financial crisis.

In his regular radio address, Mr Yeltsin said the recent financial crisis in Russia had been caused by a huge budget deficit and urged the government to stop borrowing.

He said Moscow should protect the Russian currency, the rouble, as well as the country's biggest companies in the aftermath of the crisis.

Their financial problems, he added, could cause new delays in the payment of wages to state employees.

Yesterday, Russia cut its interest rates after signs that confidence in the markets was returning.