IMF: No Russia Loans Until Reforms MOSCOW (AP) -- The International Monetary Fund won't give Russia desperately needed loans unless the government overcomes internal resistance to market reforms, the IMF chief said in an interview published Tuesday. Communists who dominate Russia's parliament frequently criticize IMF policies, and demand a reversal of, or at least an end to, free-market reforms. To many Russians, whose living standards have plummeted since the Soviet Union's collapse, the word ``reform'' is anathema. ``There are voices in Russia that say you must reject cooperation with the IMF, cut yourself off from the rest of the word, and proceed along some kind of a traditional-for-Russia `own way','' the Russian daily Novye Izvestia quoted IMF managing director Michel Camdessus as saying. ``Practice shows it to be a mistake.'' ``I don't want Russia to turn into a Cuba or North Korea.'' But even the Communists in Prime Minister Yevgeny Primakov's Cabinet want IMF loans to meet at least some of Russia's foreign debt payments this year and avoid a humiliating default. Camdessus said he understands Russia's economic plight, but insisted that loans are conditional on a sound 1999 budget plan that shows signs of financial reform. ``As soon as the government unveils a realistic plan to steer the country out of its economic crisis and implements tough fiscal policy, I will be the first to recommend that my colleagues assess releasing a new economic aid package to Russia,'' Camdessus was quoted as saying. An IMF mission left Moscow in earlier this month without striking any agreement with the government. Two IMF fiscal policy experts were expected in Moscow later this week to gather more information on the budget. There were some positive economic signs reported Tuesday. Tax Minister Gregory Boos said real production in Russia grew by 3.1 percent in the last quarter of 1998, the highest growth rate since the country began its economic reforms, the Interfax news agency reported. The increase was presumably caused by increased demand for domestic products, since the collapse of the ruble has made imports too expensive for many Russians. If the trend continues, Boos said, Russia could emerge from its economic crisis by next year. Boos also said tax payments are up sharply so far in February, and that the government might surpass its target for the month.
