IMF gets tough on Kremlin economics
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Your support makes all the difference.The Kremlin's struggle to run Russia during Boris Yeltsin's illness became even tougher yesterday when the International Monetary Fund issued a fierce rebuke over economic policy, writes Phil Reeves. Worse, fund officials prepared to leave Moscow without recommending the release of another slice of a $10bn loan.
The rap on the fiscal knuckles will add pressure on Russia, which already faces growing unease over the late payment of wages to millions of workers, prompting protest walk-outs, hunger strikes, and warnings of unrest in the military - one of the worst affected areas.
It is not the first clash between Russia's economics officials and the IMF, which came to Mr Yeltsin's aid before this summer's presidential election with a three-year $10bn loan seen by the president's opponents as a thinly disguised attempt to ensure that he would remain in power.
The IMF is now being far tougher in its dealings with Moscow. In July, it delayed handing over a tranche of the loan until an agreement had been struck over terms which the Russians now appear to have breached.
Yesterday, after a round of IMF talks, the Russian Central Bank issued a statement saying that the IMF was worried about the government's ability to raise its revenues.
There is, however, little doubt that the IMF will eventually pay up, once it is satisfied that Russia's policy-makers are committed to following their rigid conditions.
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