DATE=9/21/1999
TYPE=CORRESPONDENT REPORT
TITLE=WORLD BANK RUSSIA (L-ONLY)
NUMBER=2-254152
BYLINE=BARRY WOOD
DATELINE=WASHINGTON
INTERNET=YES
CONTENT=
VOICED AT:

INTRO: World Bank President James Wolfensohn says 
there is no evidence that World Bank money lent to 
Russia has been misused, despite allegations to the 
contrary.  V-O-A's Barry Wood reports Mr. Wolfensohn 
spoke at a news conference ahead of the annual World 
Bank - International Monetary Fund meeting in 
Washington. 


TEXT: Mr. Wolfensohn says audits have been completed 
on 30 of 34 World Bank loans to Russia and that no 
wrong-doing has yet been discovered. After the I-M-F, 
the World Bank is the biggest lender to Russia, 
providing over five-billion-dollars in the last few 
years. 

Mr. Wolfensohn says he is very concerned about 
corruption in Russia, but that it is important to 
recognize that the country has made substantial 
economic progress since the collapse of communism.

            /// FIRST WOLFENSOHN ACT ///

      What you have to remember in the case of Russia 
      is that this is a new society that has been in 
      its current form for only ten years. And ten 
      years is a very quick time to bring about a 
      change from a command and control economy to a 
      market economy. And what we've been doing in 
      Russia, particularly in the last three or four 
      years, is working on structural reform.

            /// END ACT ///

Mr. Wolfensohn says progress has been made in 
reforming bankruptcy law, pensions and the justice 
system. The World Bank president says it is vital that 
western institutions continue to support reform in 
Russia.

            /// SECOND WOLFENSOHN ACT ///

      I just think, however, that this crisis - which 
      is very positive because it gets it all out in 
      the open - should be seen as an opportunity to 
      move forward and not withdraw. I don't think we 
      should make wild loans, and I don't think we 
      should throw money away. I've never said that. 
      I've been a vigorous campaigner on the 
      corruption issue.

            /// END ACT ///

Mr. Wolfensohn says he worries that the uneven course 
of reform in Russia has left 45 percent of the 
population living in poverty.

Meanwhile, the International Monetary Fund says it is 
delaying the next installment of its latest loan to 
Russia until a U-S congressional investigation on 
alleged Russian money laundering through U-S banks is 
completed. (Signed)


NEB/BDW/LTD/gm



21-Sep-1999 13:33 PM EDT (21-Sep-1999 1733 UTC)
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Source: Voice of America
.