LIBERALISATION OF HARD CURRENCY REGULATION IN RUSSIA MUST BE GRADUAL - DEPUTY FINANCE MINISTER








//March 5, 2001, RIA Novosti - - 


	##The liberalisation of the hard currency regulation in Russia, the possibility of which is being actively discussed in the Russian financial circles, must be carried out gradually. This opinion was expressed by Deputy Finance Minister Sergei Kolotukhin in charge of foreign debts in the Finance Ministry. 


	Bearing in mind that in 2001 the restructuring of the former Soviet Union's debt to the Paris Club of creditor nations is hardly possible, it is necessary to approach the question of liberalising the hard currency legislation "cautiously and to think it over very thoroughly, mindful of the economic situation in the country," believes the Deputy Minister.  


	He pointed out that the problem of softening the hard  currency legislation is connected with the improved economic situation in Russia in 2000. This created prerequisites for  annulling or allaying a number of hard currency restrictions  which were toughened after the 1998 crisis. Now they prevent the development of the private sector and the inflow of investments. "The world practice shows that when the economic situation is improving, the hard currency restrictions become weaker, but when it worsens, they become stricter," said Sergei Kolotukhin in an interview with a RIA Novosti correspondent. 


	In his opinion, if the situation in the Russian economy in 2001 remains favourable, it would be possible to take a number of steps for softening the hard currency regulation. The Deputy  Minister believes that there is a possibility now for lowering the share of the obligatory sale of the exporters' hard currency receipts, loosening control over current hard currency operations and allaying the restrictions on the movement of the capital. 


	However, if the situation in the economy remains difficult, in this case the hasty annulment of all currency restrictions will unfavourably affect the financial situation in Russia. "If the situation begins to worsen even slightly," the Deputy  Minister said, "capital will start to flow out of the country." For this reason, he believes, the measures for liberalising the hard currency regulation must be carried out gradually, paying  attention to how the country's economy reacts to the annulment of these restrictions. -O-(kos/ant) 


	05/03/01    12:57