The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

A fruitful summer in Russia

by David Roche

Russia's role in bringing about a deal on Kosovo and its subsequent participation in the peace-keeping force has already had a quid pro quo. This month, the IMF will most likely deliver on the first tranche of funding promised under the $4.5 billion stand-by arrangement agreed with the Russians under ousted prime minister Yevgeny Primakov.

Market sentiment on Russian financial assets has been dominated by the IMF decision. The IMF has said it will pay over the funds (or to be more accurate, write off existing debt obligations by Russia from its books) only if the Russian government implements further fiscal and banking reforms.

The duma passed a bankruptcy law last March. But proceedings against debtors in the courts still take too long. Courts often overrule creditors, who have difficulty liquidating collateral and recovering assets. The IMF wanted a strengthening of the law and for the government bank-restructuring agency, ARCO, to be sanctioned for action in restoring the health of the banking system.

The IMF target for the 1999 budget is a primary surplus of 2% of GDP. The duma had agreed only a 1.7% primary surplus. So the IMF wanted further revenue-raising measures worth 2% of GDP to cover slippage.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree