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. Last Updated: 07/27/2016

IMF Loan Could Resume By End of Year: Camdessus

The International Monetary Fund hopes to resume payments of a $10 billion loan to Russia by the end of the year if tax collection improves, the head of the fund said in an interview published Monday.

IMF Managing Director Michel Camdessus told The Wall Street Journal's editorial board monthly payments to Russia might be resumed once the fund assessed proposals to improve tax collection and data showing whether revenues had increased.

He said the IMF had not set requirements for resuming disbursements of the three-year loan, and that he was confident Russia could improve its performance. "I have no reason not to be," the newspaper quoted him as saying.

For the second time in three months, the IMF decided last week to delay the transfer of a monthly amount of about $340 million because of uncertainty about the rate at which taxes are being collected in Russia.

Camdessus acknowledged that Russia was meeting fiscal targets, notably in reducing inflation, but he said the government was doing so by slashing spending to unsustainable levels rather than boosting tax collection. As a result, he said, the government is not meeting its spending promises and risks social unrest over its failure to pay salaries and pensions.

An IMF mission is due to visit Russia in the middle of November to assess the government's progress.


Camdessus said Moscow is collecting revenue equivalent to only about 9 percent of gross domestic product, compared with the 13 percent that is budgeted.

The Journal quoted him as saying that the government now faces a "formidable fight" against the country's "culture of non-payment."