The IMF has warned Russia that the $10.2 billion loan announced yesterday could be suspended if the Russian government departs from the conditions on which the loan was agreed. These include reducing the budget deficit and liberalizing trade policies. Managing director Michel Camdessus said yesterday the IMF has no intention of interfering in Russia’s internal political affairs and is indifferent to whether Russian voters elect a Communist president in June. However, he stressed, the loan was granted in order to help Russia build a market economy. The IMF would not remain indifferent if a Communist president adopted policies inconsistent with marketization, and in such circumstances the loan could be suspended. (BBC World Service, March 27) The IMF has already made payment of the loan dependent on an unusual degree of monitoring and control.
Why is Privatization Agency Drafting Bill on Nationalization?