DATE=8/17/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-237196
TITLE=RUSSIA RUBLE  (L UPDATE)
BYLINE=PETER HEINLEIN
DATELINE=MOSCOW
CONTENT=
VOICED AT: 

         ///  EDS:  THIS REPORT UPDATES CR 2-237175  ///

INTRO:  RUSSIA HAS ANNOUNCED IT WILL ALLOW THE VALUE OF ITS 
CURRENCY, THE RUBLE, TO FALL BY AS MUCH AS 50 PERCENT AGAINST THE
U-S DOLLAR.  V-O-A MOSCOW CORRESPONDENT PETER HEINLEIN REPORTS 
THE SHARP TURNAROUND IN MONETARY POLICY HAS PROMPTED AT LEAST ONE
SENIOR KREMLIN ADVISER TO RESIGN.

TEXT:  IN EFFECT, IT WAS AN ADMISSION OF FAILURE.  THE RUSSIAN 
GOVERNMENT HAS FOR WEEKS BEEN SAYING IT WOULD DO EVERYTHING IT 
COULD TO PREVENT A DEVALUATION OF THE RUBLE.  BUT MONDAY, PRIME 
MINISTER SERGEI KIRIYENKO SAID THAT POLICY HAS CHANGED.

        ///  KIRIYENKO ACT - IN RUSSIAN - FADE UNDER  ///

HE SAID, "THE BANK OF RUSSIA IS ADOPTING A FLOATING EXCHANGE 
RATE.  THROUGH THE END OF THIS YEAR, THE RATE WILL BE KEPT WITHIN
A BAND OF UP TO NINE-POINT-FIVE TO THE DOLLAR."

THE NINE-POINT-FIVE RATE WOULD AMOUNT TO A RUBLE DEVALUATION OF 
ABOUT 50 PERCENT OVER THE PREVIOUS CEILING OF SIX-POINT-THREE TO 
THE DOLLAR.

THE GOVERNMENT ALSO DECLARED A 90-DAY MORATORIUM ON FOREIGN DEBT 
REPAYMENTS, AND PROHIBITED FOREIGNERS FROM INVESTING IN 
SHORT-TERM TREASURY BILLS.

///  OPT  ///   PRIME MINISTER KIRIYENKO CALLED THE MEASURES 
"HARSH BUT EFFECTIVE."  HE DENIED THAT ALLOWING THE RUBLE TO 
FLOAT WAS A DEVALUATION, INSTEAD DESCRIBING IT AS A "NEW APPROACH
TO CURRENCY POLICY."  ///  END OPT  ///

THE FAILURE OF THE OLD APPROACH PROMPTED KREMLIN ECONOMIC AIDE 
ALEXANDER LIVSHITS TO SUBMIT HIS RESIGNATION.  MR. LIVSHITS TOLD 
REPORTERS HE WAS QUITTING BECAUSE HE WAS PARTIALLY RESPONSIBLE 
FOR THE CURRENT FINANCIAL CRISIS.  NEWS AGENCIES SAID CENTRAL 
BANK CHAIRMAN SERGEI DUBININ HAD ALSO BEEN ASKED TO RESIGN, BUT 
REFUSED.

                       ///  REST OPT  ///

GOVERNMENT OFFICIALS SAY THE POLICY CHANGES ARE DESIGNED TO 
PROTECT DOMESTIC PRODUCERS AND ORDINARY CITIZENS FROM MARKET 
SPECULATION.  AT THE SAME TIME, IT WILL EASE THE GOVERNMENT'S 
BUDGET CRUNCH, MAKING IT POSSIBLE TO PAY OVERDUE WAGES AND 
PENSIONS. 

BUT COMMUNIST LEADER GENNADY ZYUGANOV CALLED THE POLICIES A TOTAL
BANKRUPTCY.

        ///  ZYUGANOV ACT - IN RUSSIAN - FADE UNDER  ///

HE SAID, "THIS WILL STRIKE AGAINST THE POOR, AND AT THE SAME 
TIMES BANKS WILL CRASH, AND FOREIGN INVESTOR CONFIDENCE IN RUSSIA
WILL BE UNDERMINED." 

MR. ZYUGANOV SAID PARLIAMENT HAS AGREED TO MEET FRIDAY FOR AN 
EMERGENCY SESSION ON THE FINANCIAL CRISIS.  BUT HE SAYS DEBASTE 
WILL FIRST FOCUS ON THE GOVERNMENT'S ECONOMIC PERFORMANCE, AND 
ONLY LATER WILL CONSIDER PENDING ANTI-CRISIS LEGISLATION 
GOVERNMENT OFFICIALS SAY IS URGENTLY NEEDED.  (SIGNED)

NEB/PFH/JWH

17-Aug-98 10:41 AM EDT (1441 UTC)
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Source: Voice of America
.