§ Sir Thomas Arnold
To ask the Chancellor of the Exchequer how the G7 proposes to help the Russian Government to strengthen their efforts to achieve their macroeconomic stabilisation and to establish a credible programme of social support.
§ Mr. Nelson
Macroeconomic stabilisation in Russia depends on the implementation of appropriate policies by the Russian Government. At their meeting in Kronberg on 26 February, G7 Finance Ministers encouraged the International Monetary Fund and the Russian Government to reach agreement on a suitable economic programme, which could be supported by IMF resources under the second tranche of the systemic transformation facility. The G7 confirmed that all the other elements of the $43 billion package announced in Tokyo in April 1993 remained available to Russia as reform was progressively implemented.
Bilateral donors have provided technical assistance on the development of a suitable social safety net in Russia. 507W This includes assistance from the United Kingdom through the know-how fund. G7 Finance Ministers underlined the importance of a credible programme of social support to enhance public acceptance of the reform process and urged the World bank and Russia to co-operate in accelerating disbursement of the elements of the $3 billion special privatisation and restructuring programme which addressed the social dimension of reform.