-Caveat Lector-

Russians optimistic over new IMF loan

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MOSCOW (AP) - Russia's former prime minister and Moscow's mayor expressed
optimism Saturday that a new loan deal with the International Monetary Fund
would be successfully negotiated.

Former Prime Minister Viktor Chernomyrdin, returning from a visit to the
United States, said he believed talks with the IMF under way in Moscow would
reach a successful conclusion by the end of the month.

Moscow's Mayor Yuri Luzhkov, a favorite to succeed President Boris Yeltsin in
next year's presidential elections, also said he was hopeful a loan deal would
be negotiated.

The government recruited Chernomyrdin to help move along talks with the IMF
because he has long experience with such negotiations and good personal
contacts with IMF chief Michel Camdessus and Vice President Al Gore.

Russia has accumulated about $150 billion in debts to foreign lenders, and is
due to pay off $17.5 billion this year. The government has already said it
can't meet the obligation and is hoping that a combination of new loans and
restructuring agreements will help it avoid default.

Chernomyrdin, who returned Friday night, telephoned Prime Minister Yevgeny
Primakov on Saturday to brief him on his meeting in New York with Camdessus,
the ITAR-Tass news agency said.

Although Chernomyrdin pointed out he had no powers to negotiate, he said his
meeting with Camdessus went well, ITAR-Tass said.

Chernomyrdin was scheduled to meet early Sunday with Finance Minister Mikhail
Zadornov, who is leading the Moscow talks with an IMF delegation, the Interfax
news agency reported.

The Russian economy plunged last August after the government defaulted on some
debts when the country was hit by the global crisis in emerging markets.

Yeltsin, seeking to assure the IMF that the government is taking steps to
restore a sound economy, has ordered a larger state role in Russia's banking
system, Interfax reported.

The IMF mission in Moscow is expected to prepare a report on Russia's economic
condition by March 24, when Primakov is scheduled to meet with Camdessus in
Washington.

Copyright 1999 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.

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