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U.S. to support IMF loan
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September 1, 1999: 5:26 p.m. ET
U.S. will support IMF payment to Russia despite allegations of corruption
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AUBURN, N.Y. (CNNfn) - The United States is all but certain to support the next installment of International Monetary Fund loans to Russia, despite allegations of widespread corruption and money laundering, several senior administration officials told CNN on Wednesday.
The officials, speaking on condition of anonymity, said a Justice Department investigation has uncovered no evidence that IMF payments to Russia have been siphoned off by "oligarchs" believed to be involved in a massive plundering of Russia's financial resources.
The Justice investigation is continuing, as is a third IMF audit of its loan program to Russia. IMF officials say they see no reason to block a $640 million installment due to be forwarded to Russia soon.
And U.S. officials say they are of the same opinion. They say the United States has these criteria:
- Continued Russian support of economic reforms. Administration officials acknowledge the pace of reform has slowed dramatically but say the new prime minister promises to get reform back on track.
- Safeguards to protect new installments of IMF money from abuse. Officials say they are confident these are in place.
- Assurances of proper accounting practices to trace IMF and other international economic aid.
Two Price Waterhouse audits have been conducted into Russian government finances and a third is under way, administration officials say. Barring strong evidence of wrongdoing in the soon-to-be completed audit, US officials say the next $640 million installment should go forward.
Said one senior official: "Look, there is serious and widespread, chronic corruption in Russia and we need to deal with that and be more aggressive in getting them to deal with that. But there is no evidence any IMF money has been misappropriated."
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