MOSCOW Aug 7: The Soviet Union and the IMF have agreed that technical cooperation should be Moscow's first step towards full membership of the world's major financial institutions, a senior Soviet banker said on Tuesday, reports Reuter. |

Oleg Mozhayskov. head of the hard currency department at the Soviet central bank, said agreement was reached during a recent visit by Internationa] Monetary fund (IMF) and World Bank delegations

Leaders of the group of seven major Industrialised democracies offered Moscow associate IMF status at a meeting with President Mikhail Gorbachev In London last month.

This would make It eligible for IMF advice on market oriented reforms for the Soviet

But Gorbachev Signalled that the Kremlin wanted more by lodging a surprise application for full IMF membership, which would also provide access to badly -needed credits.

"We have come to a general understanding of what associate status should mean. "Mozhayskov told a round table discussion on Soviet foreign

"Associate status Is an Intermediary position that the Soviet Union will hold In order to launch an intensive process for full membership. We are not talking about money but about technical aid." he said.

The Soviet Union is seeking lo replace its old central economy which would be integrated into the world financial system.

"Our objective today is to hammer out a concrete mechanism for thio integration." said Ivan Ivanov, a consultant to the Soviet parliament on foreign economic relations.

He said close attention was being paid to recommendations contained in a three-volume IMF report on the Soviet economy, drawn up late last year.

Planned reforms include sweeping privatisation, price liberalisation and moves to make the Rouble convertible.

Mozhayskov said an IMF office would be opened In Moscow. But he acknowledged that It could be some time before Moscow was ready to become a full member of the IMF and World Bank, especially If the reform progress was sluggish.

He said that in addition to picking IMF brains on reforms the new relationship would allow Moscow to study IMF operations and to attend meetings of its board of directors.

In return, the Soviet Union would do everything possible to make relevant information available to IMF experts. But some data, such as gold reserves. remained confidential.