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. Last Updated: 07/27/2016

Government Near To Surplus Deal

The government and the International Monetary Fund are inching toward compromise on a key parameter of the 1999 federal budget, which would allow Russia to receive more IMF loans, a news report said Tuesday.

The sides have yet to reach agreement on the size of the primary budget surplus, the revenue left over when all spending is accounted for apart from debt servicing.

The IMF's approval of the budget is necessary for the government to continue receiving funds from an 18-month $4.45 billion loan program.

The IMF, which currently has a team of economists in Moscow to examine the government's compliance with loan conditions, originally demanded a primary surplus of 4 percent of gross domestic product, while the government offered a surplus of 2.8 percent of GDP.

Now the two sides are close, First Deputy Prime Minister Viktor Khristenko said Tuesday, as reported by Interfax. The government is proposing a surplus of 3.2 percent of GDP while the IMF is holding out for a 3.5 percent primary surplus, Khristenko said.