World Bank Says Loan to Russia Further Delayed: Need cash from energy suppliers up front : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Feb 24, 2000 - 10:19 AM

World Bank Says Loan to Russia Further Delayed

The Associated Press

MOSCOW (AP) - The World Bank is likely to delay the next installment of its loan to Russia for at least two months because of the government's failure to meet loan conditions, a bank official said Thursday. The World Bank has so far released $400 million of the $1.5 billion loan, and was expected to issue the next $100 million installment last fall.

"The main issue at this point is simply that there are a substantial number of steps which remain to be taken to meet the conditions of that tranche," Michael Carter, the World Bank country director for Russia, said.

He said the government has yet to make progress in boosting cash collection from natural gas monopoly Gazprom and power grid operator Unified Energy System. The World Bank is also awaiting parliamentary approval of amendments to the bankruptcy law and changes to the civil code, Carter said.

"I think it's at least a couple of months and probably more before that tranche will be ready for release, in the best of circumstances," he said.

The International Monetary Fund has set similar conditions for resuming lending. A $640 million installment of the IMF's $4.5 billion loan to Russia has been delayed since September.

Meanwhile, a World Bank mission arrived in Moscow on Thursday to review the government's adherence to conditions for the next $100 million tranche of the remaining $250 million of a separate coal industry restructuring loan. Carter refused to give any timetable for its release.

-- Carl Jenkins (, February 24, 2000


Carl ... This is not criket ! The Swiss bankers are counting on the Russian mafia to increase their accounts by at least a half billion by April . This will cause reverberations in the financial world , possibly even " hard times " for many bankers . What can the World Bank and the IMF be thinking ? After all , they loan billions to countries with little hope of ever seeing most of it again . And what are promises to " do the right thing " anyway ? They know the Russians don't intend to pay it back . Why not just give to them ? After all , the stupid Americians can borrow more from the rest of the world , as they are bankrupt already , but THAT doesn't stop them from selling more treasury bonds to the Japanese who know their fiat money is as worthless as ours.

Ah ! NOW I remember ! None of the fiat bankers/governments/countries dare admit that, or it's GAME OVER . Besides , there are so many faithful citizens toiling blissfully away for this worthless paper , it would be a shame to see them disillusioned . Pity ! But , ignorance is bliss . Eagle

-- Hal Walker (e999eagle@FREEWWWEB.COM), February 24, 2000.

maybe the sheeple now the money will be worthless and thats why the are going on the biggest collective shopping spree in alll of history.

-- i know (, February 24, 2000.

2:39pm...DOW 9953...Black Friday tomorrow?

-- canthappen (, February 24, 2000.

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