MADRID -- The World Bank has had discussions with Russia on allocating a significant volume of social and human resources lending and could consider co-financing projects, Bank President Lewis Preston said Thursday.


"The significant development here is that Russia is prepared to borrow for social purposes in fairly significant amounts," he told a news conference on the last day of the IMF and World Bank annual meeting.


Preston was answering a question about possible consequences for World Bank programs of Wednesday's debt agreement between Russia and its 600 creditor banks. The deal, signed in Madrid, gives Russia more time to pay about $24 billion in commercial debt built up by the former Soviet Union.


World Bank officials said the bank was discussing a lending program of between $2 billion to $3 billion for fiscal 1994-95 for Russia, with approximately one-third going to social programs.


Prime Minister Viktor Chernomyrdin, during a visit to Washington this summer, reversed his country's previous reluctance to borrow abroad for social programs.


Total World Bank commitments to Russia since it joined the bank in June 1992 amount to $2.9 billion, including two loans totaling $700 million that were signed last week.