IMF managing director Michel Camdessus said Monday he had been impressed by the "steadfastness" shown by Russian authorities in implementing economic program this year.
At the economic summit of leading industrial countries in Naples, Italy earlier this month, President Bill Clinton and other Western leaders endorsed proposed changes being considered to expand Russia's access to IMF loans.
U.S. officials estimated that the changes could boost Russia's support from the IMF by between $3.5 billion and $5 billion. Camdessus refused to estimate how much in additional resources could be provided. But other IMF officials, who spoke on condition of anonymity, said that two proposals being considered would provide an additional $5.4 billion to Russia.
Of that amount, $3.6 billion would come from expanding Russia's borrowing authority to 90 percent of its IMF resources, up from 68 percent now.
The other $1.8 billion for Russia would come from extending an emergency loan program for another year. That program, known as a Systemic Transformation Facility for communist countries instituting free market reforms, has provided Russia $3 billion in the past two years.
Camdessus said that the IMF intended to begin negotiations with Russian authorities this fall for the first regular IMF loan to Russia, money that has been delayed for two years because of Russia's failure to achieve IMF targets for restraining inflation and getting its budget deficit under control.
However, President Boris Yeltsin's government has been much more successful this year, both in reducing the budget deficit and getting inflation down to 5 percent a month, compared to 20 percent a month last year. At a special government session in the Kremlin last week, Prime Minister Viktor Chernomyrdin, who had declared an end to "market romanticism" when he formed the cabinet six months ago, stressed the importance of continuing a tight budgetary policy and attracting foreign investment.
Camdessus said that Russia's progress made him hopeful that the country will finally be able to qualify for a regular IMF borrowing program this fall.
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