According to reports in the Russian media, the government has decided not to proceed at present with its request to four leading western banks (Chase Manhattan, Salomon Brothers, CS First Boston, and Deutsche Morgan Grenfell) for an emergency loan to help it bridge its present cash crunch. Last week, the banks reportedly agreed to a $2 billion loan, but this week the Russian government changed its mind. (Russky telegraf, ORT, December 10) The explanation appears to reflect renewed optimism on the part of the government both that Russia’s economy is fundamentally sound and that the IMF will shortly (next month, if not this) resume payment of the suspended tranches of its extended Fund facility to Russia. Loans from international financial organizations such as the IMF, when available, have the added attraction of being considerably cheaper than those from commercial banks.
Russia’s Tax Laggards Face Bankruptcy.