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Kremlin likely to run out of money on Monday
MOSCOW. Nov 29 : The Soviet k-gislalurc failed lo approve a deficit-spending pack age Thursday and Slate Bank officials said the Kremlin could run oul of money temporarily on Monday. Soviet media reported, reports AP.
The bill, proposed by President Mikhail S Gorbachev. would have allowed the State Bank help the Finance Ministry cover its fourthquarter budget with 90 billion roubles, according to the news Sncics Tass and Interfax.
it is about 159 billion Dollars at the ht^ily artificial rale used to calculate government transactions.
legislators anticipating the demise of central authority apparently Just skipped Thursday's session, preventing a quorum and blocking an proval of the spending bill by the Supreme Soviet's lower house The chamber wasn't scheduled lo hold another session until next Tuesday. Interfax said
"In the opinion of State Bank representatives, ‘this signifies that financing of current payments will stop as early us Monday." Interfax said
It was unclear to what extent salaries and government
functions would be ufketed
The government has been weakened und Communist authority shattered because of the coup attempt In August. The Kremlin has been stripped of nearly all its assets and income-producing industries by Boris Yeltsin's Russian gmniiik lit.
The legislature's upper chamber has approved the deficit-spending package. and the Soviet newscast TV Inform' reported that the vote' by the upper house was suffl dent of approval of the measure. But Tass and Interfax s.iid approval by both houses w.ts necessary.
legislative officials could nol be reached late Thursday by The Associated Press to clarify the discrepancy.
Even if approval by only I Ite upper house is sufficient. It is unclear how the legislation would help. State Bank Chairman Victor Gerash chcnko earlier In the- week ■Said the bank only had 3 ballon roubles on account.
The government has been operating at least partially on deficit-spending since last summer, when Gorbachev permitted a 68-billton-rouble credit from the Slate Bank to the Finance Ministry. He also
ordered the Stale Bank lo print extra money lo help cover the estimated 175-bil-lion-roubk- budget deficit
The Ml considered Thursday would approve credit for the rest of the year. Most of the 90 billion rouble credit for the quarter already has been Gorbachev decree, said k0sta-tor Vladimir Samarin.
Samarin, quoted by the government-run Russian Information Agency. said the interim Kremlin leadership was running Its finances not hy budgets but guesses.
But "one way or another, this (bill) has to be appruwd." bamarin said. the Russian Information Agency reported.
Also Thursday, the Soviet foreign trade bank Vnesheconombank, which is responsible for foreign currency, turned away customers wanting cash, saying it was oul
A bank spokesman sold tin refusal «ras due io a mtsuiuk r standing but conceded the institution was having 'difficulties with liquidity "
Yeltsin's government has lake control over must of the Kremlin's main sounxs of in-coiix and the Slate Bunk has cut off funding to about 80 ministwers