29. Imf and Russia.

IMF is an organization of 187 countries, working to secure financial stability, promote international trade, high employment and stable economic growth, and reduce poverty around the world. It was established in July 1944. The main goal is regulation of monetary relations of members and support them during crisis giving short-term or long-term credits. In January 1992 Russia asked for 6 bln $ fofr establishing stabilization fund. The 1st agreement was signed by Камдессю and Гайдар in July 1992. 1 June 1992 Russia officially became a member of this organization. Russia wasn’t given these 6 bln $ for stabilization fund of ruble. The IMF explained thise refusal in that way: Russian government didn’t execute stabilization program, the level of GDP decreased, the level of inflation increased and there was a deficit of federal budget. In June 1993 the IMF offered another credit (3 bln $) that was called System Transformation Facility – STF. It wasn’t so strict, as previous credits, but the borrowing state hadn’t imposed trade restrictions. But in September the IMF stopped giving money to Russia, because government couldn’t reduce inflation. After the “Black Tuesday” (11 October 1994) the main macroeconomic goal of Russian government was to curb inflation. As a result Russia got a reserve stabilization credit from the IMF equal to 6,8 bln $. Government had to decreade level of inflation on 2% per month and the deficit of government budget. From the economic point of view the most successful year for Russia was 1997. The economic situation in 1998 became much more worse, because of the decrease of prices on the world market of energy resources. The government developed anti-crisis program and asked the IMF for credit. But the 1^st tranche couldn’t solve the problem, so there was a default in a country. After the default Russia didn’t get financial help from the IMF. In 2005 Russia advanced repaid a credit to the IMF, paid 3,3 bln $.

The IMF expects the Russian economy to grow 4.1% this year.

30. Wto and Russia

The WTO was established in 1995. There 153 members. The headquarter is situated in Geneva. Was established for liberalization of world trade.

Advantages of Russia`s accession to WTO:

• Promote increase of standard of living

• The chance to protect the Russian exporters on foreign markets

• Protection of foreign investors and protection of copyrights in Russia

• Development of the international relations

Disadvantages of Russia`s accession to WTO:

• A number of industries of the Russian economy won't sustain a competition. It will lead to unemployment

• Liberalization of tariffs will make more attractive not manufacture, but import of the goods

• Receipts in the budget from import duties will decrease

33. The balance of payments is the sum of all transactions which take place between its residents and the residents of all foreign nations.

These transactions include:

-merchandise exports and imports

-import of goods and services

-tourist expenditures

-interest and dividends received or paid abroad

-purchases and sales of financial or real assets abroad

The balance of payments statement shows all the payments a nation receives from foreign countries and all the payments it makes to them.

These statement include:

1. Current account summarizes trade in currently produced goods and services

Good exports

Good import

Balance of trade

Export of services

Import of services

Balance on goods and services

Net investment income

Net transfers

Exports have a plus – they are credit

Import has minus – credit. They reduce the stock of foreign currencies.

Net investment income represents the excess of interest and dividend payments people abroad have paid for the services of exported capital over what domestic economy paid in interest and dividends for the foreign capital invested in this economy

Net transfers both private and public between the economy and the rest of the world.

Trade balance is the difference between its exports and imports of goods

Balance on goods and services are the difference between its exports and imports of goods and services.