IMF SAID READY TO LEND RUSSIA US$11 BILLION.

According to The New York Times, the International Monetary Fund has told Russian government officials that it is ready to lend Russia US$11 billion to stabilize the ruble and restore international confidence in Russian markets. As Russia’s financial crisis deepened last week, negotiators were reported to have increased their request from an initial US$10-15 billion to US$20 billion. Negotiations continued over the weekend, but the deal on which the Russian government is pinning its hopes was not announced, as had been promised, on Sunday. Russian officials put a brave face on it, saying agreement had been reached on substantial issues and that an announcement would be made today, Monday. They continued to insist that a ruble devaluation was not under consideration. (Reuter, July 12)

Russia reportedly reached a parallel deal Saturday with the World Bank for between $1 billion and $1.5 billion. This loan is said to come with strings, requiring Russia to introduce more competition into its oil and gas sectors and specifying that the natural gas giant Gazprom must separate its production and pipeline operations. Russia is said also to be hoping to negotiate a further $10 billion in loans from Western commercial banks. (Reuter, NTV, July 12)

BATTLE FOR YELTSIN SUCCESSION HEATS UP.