Facebook Twitter

U.S., other nations, IMF work on Russia’s $$ woes

SHARE U.S., other nations, IMF work on Russia’s $$ woes

The United States is working with the International Monetary Fund and other major industrial countries to find ways to help Russia deal with its financial crisis, says Treasury Secretary Robert Rubin.

He did not discuss how much or when additional resources might be made available.But Rubin said Monday in a television interview that there was an "intense focus" on the part of the world's seven wealthiest countries - the United States, Japan, Germany, France, Britain, Italy and Canada - to work with the Russians to come up with a substantial assistance package.

President Clinton had issued a statement Sunday saying that the United states "endorses additional conditional financial support" from the IMF and the World Bank to promote stability.

Last week, the Russian central bank pushed up interest rates to 150 percent in an effort to convince investors not to flee the country, but the moves so far have failed to halt panic selling.

A similar downward spiral last year in Thailand, Indonesia and South Korea prompted the IMF to assemble more than $100 billion in financial bailout packages for those three nations.

Rubin, in a CNN interview, said the threat of contagion from one country to another underscores the need for the United States and other countries to "do everything possible in order to re-establish financial stability."

"The concern has always been that a problem in one country can lead to difficulties in other countries for all kinds of reasons and you have seen that phenomenon over the last two or three weeks," he said.