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Despite economic recovery, Russia may need IMF support in the future The International Monetary Fund (IMF) has accepted that Russia may need more loans in 2003, when it faces a surge in its debt repayments, according to finance minister Alexei Kudrin.

Mr Kudrin was speaking after meetings with IMF deputy managing director Stanley Fischer and Russian President Vladimir Putin, as part of an ongoing IMF mission in Moscow. Earlier this year, the Russian government declined an offer of fresh IMF loans, saying that its economy was now in strong enough shape to manage unaided.

The current mission is reviewing Russia's draft 2002 budget, which in its present form would be the first in the post-communist period to show a surplus. The reconciliation with the IMF is another sign of the outwardly-looking nature of Mr Putin's Russia, which has gone out of its way to engage with the internatinal community - even as relations with the United States have become difficult.

Recovery

High oil prices and the competitive after-effects of the August 1998 devaluation of the rouble have boosted Russia's economy in the last couple of years. Russian GDP rose by 8.3% last year, by far its strongest post-communist performance, and the rouble has remained steady.

Last year, the Russian government started to pay down its debts to the IMF, with the explicit aim of freeing itself from its previous dependence on the Fund. But Russian officials have recently conceded that they may need to seek new foreign financing for 2003, when $18bn owed to foreign creditors comes due. The IMF has not yet officially acknowledged Russia's need for future loans, but it has plans for a number of further Moscow missions, including one in September.

Friends again

Russia's rapid recovery from the economic slump of the 1990s has improved relations with the IMF, which have often been tense in the past. The IMF has often criticised the Russian government for its failure to collect taxes, to tackle corruption, or to reform the banking system.

But in Moscow this week, Mr Fischer praised the present government's attempts to solve the country's fundamental economic problems. "What you have done and what you are preparing to do creates a huge impression," he said.

For his part, Mr Putin complimented Mr Fischer, who plans to step down from his IMF role before the end of the year. He also offered him a job. "We are always glad to see you in our country," said Mr Putin." If you would like to move from the IMF to Moscow, we can look at various options."

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