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. Last Updated: 07/27/2016

IMF Aided Yeltsin

The International Monetary Fund went beyond the $9 billion [Extended Fund Facility] -- which the Russian government had long ago considered in its pocket -- adding an additional $1.2 billion. Judging from yearly allocation plans (the IMF intends to dole out $4 billion in 1996 instead of $3 billion), the increase is meant to serve as additional support for Russia's financial authorities, who are skirting the brink of inflationary disaster as they head into the presidential elections.

Camdessus' declaration at the concluding news conference that the IMF is not coming out in support of Boris Yeltsin's re-election bid appears to be purely diplomatic.

For all intents and purposes, the IMF funds will help to decrease budget tensions due to Yeltsin's directives regarding allocations for the social sphere. Actually, there is nothing seditious in all of this: The IMF's responsibility to promote macroeconomic stability has always denoted a need to aid -- in terms of real policy -- the authorities who are professing that stability.