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. Last Updated: 07/27/2016

IMF May Delay Next Tranche Of $10 Billion Loan to Russia

The International Monetary Fund slammed on the brakes in its dealings with Russia on Tuesday and said payment of part of a $10 billion loan was not likely yet.


"The [IMF] mission is not yet in a position to recommend the release of the latest tranche," IMF Moscow representative Martin Gilman said.


A Finance Ministry official said the release of the next loan installment -- about $320 million -- would depend on how the IMF viewed Russia's January figures. But he admitted tax revenues were low.


"We have not fulfilled some demands of the IMF's monetary program, including revenues," Finance Ministry macroeconomic department head Anton Siluanov said. "But we do not think this may be a reason for freezing the tranche."


Siluanov said differences with the IMF over projected 1997 revenues as part of an economic blueprint could also slow the release of loan installments. "We have proposed an alternative for the revenues adjusted to the realities of this year. The new tranche will depend on whether the IMF board agrees with our variant or not."


The 1997 budget provides for revenues of 404.3 trillion rubles ($71.4 billion), but government officials have acknowledged this figure is unrealistic.


"The budget is politics," Siluanov said. "What we are talking about with the IMF is real life."


Analysts said the delayed tranche would probably be paid soon. "My own view is that they will get the money after the next round of talks," said one Western economist. "The IMF needs to assess January figures in the context of plans for the year."