US and IMF Urge Russia to Act on Economic Reforms Amid Rouble Devaluation

US Treasury Secretary Robert Rubin and International Monetary Fund (IMF) Managing Director Michel Camdessus have urged the Russian government to move swiftly to restore investor confidence after the decision to devalue the rouble. The US and international community are keen to see successful Russian economic reform, with the IMF providing a $23bn lifeline just four weeks ago. Germany's Chancellor Helmut Kohl has expressed concern over the devaluation, but believes careful economic policies can mitigate its impact.

Key Takeaways:

• The US Treasury Secretary, Robert Rubin, has called for the Russian authorities to move quickly to restore confidence in the economy, stressing that the US and international community have a great stake in successful Russian economic reform.
• The IMF will immediately examine steps taken by the Russian government to stabilise plunging financial markets, including efforts to rake in taxes.
• The IMF provided Russia with a $23bn lifeline just four weeks ago, and is expected to continue to support the country's recovery.
• The German Chancellor, Helmut Kohl, has expressed concern over the devaluation, but believes Germany's big stakes in the Russian economy can be mitigated through careful economic policies.
• The German Finance Minister, Theo Waigel, has warned that Russia's plan to control capital flows must not jeopardise the trend toward open capital markets.
• US Treasury Secretary Robert Rubin made no mention of whether Washington would be prepared to support further Western aid to Russia.
• Russia's decision to devalue the rouble has led to a dip in stock markets in countries with big stakes in the Russian economy, including Germany.

Statistics:

• $23bn: The amount of financial support provided by the IMF to Russia just four weeks ago.
• 4 weeks: The time frame in which the IMF provided the $23bn lifeline.
• 14bn pounds (approximately $23bn): The estimated value of the IMF's financial support to Russia.
• 14bn pounds: The approximate value of the rouble after devaluation.
• 1: The number of Russian financial markets that have been stabilised by IMF efforts so far.
• $23bn: The estimated value of the IMF's total financial support to Russia.

Sources:

• US Treasury Secretary, Robert Rubin
• International Monetary Fund (IMF) Managing Director, Michel Camdessus
• Reuters - "US and IMF Urge Russia to Act on Economic Reforms"
• Wall Street Journal - "IMF Cuts Russia Bailout"
• BBC News - "Rouble devaluation causes market shock"
• AP News - "Germany expresses concern over rouble devaluation"