IMF is sorry about unsuccessful talks in Kazakhstan, and urges the reforms

/Almaty office of REUTERS, Washington D.C., 09.08.99/ - International Monetary Fund is sorry about latest unsuccessful talks held on Monday in Kazakhstan, and urges the former soviet republic to implement the reform, emphasizing on maintaining high interest rates. "The directors had stressed out thoroughly developed program could have had positive impact on investors", is stated in IMF document summarizing July 26 issue of the review of Kazakhstan economy. "The directors sorry that neither the government nor the officials could reach an agreement in developing of the program for receiving an extended loan from IMF. With current difficult situation in the country, they persuaded the government to formulate the economic program as soon as possible to get a support from IMF", is stated in the document. IMF officially confirmed Kazakhstan quit fulfilling the conditions of IMF's three year loan program which expired this July. In May IMF officials said they had been planning further talks, but these talks could be held only when the government was discussing differences in the budget and the trade policy. Last statements imply that Kazakhstan did not react adequately to difficult external conditions and the budget deficit still remains high. "The directors emphasized the necessity of consolidating the fiscal position, supporting judicious monetary position and continuing the process of transformation in order to return to the growing economy", said IMF.