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. Last Updated: 07/27/2016

IMF advisers snubbed as Russia begins listening to World Bank

The drafting of a new Russian government economic program has become a battleground between advisers representing the International Monetary Fund and the World Bank. The two organizations have been careful not to openly criticize each other, yet IMF, World Bank and Russian officials confirmed that the two international bodies are giving different advice to the Russian government.


The IMF is insisting on the Russian government's strict adherence to the monetary, credit and budget controls which were spelled out last February. Thre World Bank, meanwhile, is advising the government to "correct" its "strategy, stretch out the time needed to reach the monetary and fiscal targets, and as a first priority revive domestic production.


The target for both IMF and World Bank teams is the newly drafted economic plan, excerpts of which were published Tuesday by The Moscow Times. The World Bank was asked by the government to provide models and projections for alternative policy scenarios spelled out in the plan, which is still in the works.


Architects of the new plan said that they expect a completed program within a week.


A summary will be presented by President Boris Yeltsin to the U. S. government next week, and the full plan to members of the Group of Seven leading industrialized nations, before their meeting in Munich on July 7.


IMF officials claim the new program is a strategy for the "medium term" and insist the Russians agree to the IMF recommendations for now. An IMF negotiating team, headed by Tom Wolf, is in Moscow with a draft letter of intent that the Russian government must sign before it can begin to draw on the IMF's promised $4 billion credit line.


Though a showdown between the IMF and World Bank is unlikely, the differences between the two groups are encouraging Russian officials to urge G-7 governments to follow the World Bank lead in setting terms for financial assistance to Russia.