Thursday, April 22, 1999 Published at 06:24 GMT 07:24 UK
Business: The Economy
IMF set to bail out Russia
Russia's economic problems are far from over
Michel Camdessus, the head of the IMF, said the new deal could be agreed in the next few days.
In return for the badly needed loans Russia will have to agree to new economic reforms
Russia's economic woes sent shockwaves reverberating around the world's financial system. The country still faces many difficulties and needs help to stage a sustained recovery.
Mr Camdessus said that Russia remained the fund's biggest problem.
However, he said that the world economy had shown signs of recovery over the past six months - although he cautioned against complacency.
"The climate is distinctly better," he said.
Brazil, Latin America's largest economy, has faced huge financial problems - but the IMF believes it has now pulled back from the brink.
The crisis that spread across Asia also caused investors to bail out of developing countries.
Now Mr Camdessus said capital flows were starting to recover and the IMF had probably been too pessimistic in its latest forecasts for Brazil - a projection that output would contract by 3.8% this year.
"What we see in the strengthening of the vitality of the economy of Brazil suggests that we could have been wrong," he said.
Bankers and finance ministers are preparing to meet in Washington for the spring meeting of the World Bank and the IMF.
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