GOVERNMENT PINS HOPES ON INTERNATIONAL HELP.

The government remains hopeful that the IMF will release the latest US$670 million tranche of the extended loan to Russia as early as today. However, this is not a new loan and the money has already been anticipated in the federal budget. It is certainly not enough to tide Russia over its present financial crunch. What the government would really like would be for the IMF to put up an emergency “fighting fund” of some US$10 billion to demonstrate international commitment to the ruble. But IMF managing director Michel Camdessus made it clear yesterday that he has no intention of lending such a huge sum, at least until the government has done more to put its public finances in order. “I have no reason to believe such a need exists,” he told a press conference in Kazakhstan yesterday. If the IMF refuses, the government may turn instead to a combination of western governments and private financiers. (Financial Times, May 29) Gazprom’s Vyakhirev hinted at such a possibility when he said yesterday that he plans to invite international business leaders to a meeting on June 3 to discuss ways of helping Russia out of its predicament. (Itar-Tass, May 28)

YELTSIN DECREES NEW DEFENSE COMMISSION.