YELTSIN DECREE SEEKS TO PREVENT RISKY REGIONAL BORROWING.

More details of adecree signed by President Boris Yeltsin on June 10 have emerged. The billseeks to regulate access by Russia’s regions to international bond markets.Preliminary reports evoked a furious reaction from regional governors led byMoscow Mayor Yuri Luzhkov. (ORT, Itar-Tass, June 10; and see the Monitor,June 11) Luzhkov’s objections were dismissed by a unnamed governmentofficial, who told Itar-Tass that the mayor was overreacting: He did nothave access to the complete text of the presidential decree. (Itar-Tass,June 10) Subsequent information indicates that Yeltsin’s decree states thatregions will be allowed to issue Eurobonds independently, without seekinggovernment approval, provided that they meet certain requirements. One isthat the region in question must have two international credit ratings. Theother that is any Eurobond it issues may not exceed 30 percent of totalregional revenue. For financially strong regions such as Moscow, this shouldbe no problem. The aim of Yeltsin’s decree is to prevent irresponsibleborrowing by weaker regions that might later default on debts for which thefederal government would find itself responsible. (Reuters, June 11)

DUMA SEEKS TO BAR YELTSIN FROM NEXT POLL.