BBC Homepage World Service Education
BBC Homepagelow graphics version | feedback | help
BBC News Online
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 

Wednesday, 13 June, 2001, 11:34 GMT 12:34 UK
IMF mission arrives in Moscow
Russians in queue
The IMF should be happy with some of Russia's reforms
An International Monetary Fund (IMF) mission arrives in Russia on Wednesday, to assess the progress of economic reform, which might pave the way for future loans.

The mission members, led by Gerard Belanger, will have meetings with Alexei Kudrin, Vice-Premier and Minister of Finance, and other members of the Russian government.


Sustained economic growth is not possible without decisive acceleration of structural reforms

Alexei Kudrin, Finance Minister

In October last year, the IMF suspended its existing programme of loans because of the Russian government's delay in implementing reforms and continuing worries about corruption.

Earlier this year, Russia declined to enter into further negotiations with the IMF. Russia's bargaining position is strengthened by the strong price of oil, which lessens its dependency on IMF money.

It nonetheless chose to renegotiate its commercial debt with the Paris Club.

Russia has sought to develop a modern market economy since the financial crisis of 1998, which rendered many banks insolvent, saw Russia default on its domestic debt and resulted in the devaluation of the rouble.

Last year, President Vladimir Putin introduced a radical programme of reforms including a shake-up of the tax system, simplified business procedures and a fight against corruption and money laundering.

Even finance minister Alexei Kudrin has admitted that reform is necessary.

Denis Rodionov of Brunswick Securities in Moscow, told BBC News Online that the IMF would be pleased to see that overall, most of the reforms were moving forward - particularly on taxation.

However, Mr Rodionov also said that there were two areas that will disappoint the IMF:

  • Restructuring of Gazprom, the state-run gas company, has been delayed until after the autumn
  • Reform of the banking sector has faced problems as the Central Bank has been reluctant to move in a new direction.

One issue likely to be on the agenda is Russia's role at next month's G8 summit, the annual meeting of heads from the seven leading industrial nations of the world plus Russia.

The next meeting of the G8 group is in Geneva on 20 July.

Search BBC News Online

Advanced search options
Launch console
BBC RADIO NEWS
BBC ONE TV NEWS
WORLD NEWS SUMMARY
PROGRAMMES GUIDE
See also:

28 Mar 01 | Business
Russia rejects IMF loan
21 Nov 00 | Business
IMF: No deal with Russia
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories