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Gorbachev differs on Yeltsin’s privatisation process
BUENOS AIRES, Nov 30: Russian President Boris Yeltsin is going too fast in his drive to prlva’lse R- ssla s state-owned companies, former Soviet President Mikhail Gorbachev said, reports Reuter.
prefer al a news conference at the start of a five-day visit, Gorbachev chided Yeltsin for trying to privatise "everything in one year.”
“Why should a country like ours, with 200 million people and centuries of history, finish its privatisations in one year?” he asked
Gorbachev said Yeltsin, by trying to undo In a single year the legacy of decades of communism. was causing hardship to the .Russian people with his economic sock treatment.
"I'm against the timing and methods of the current administration's reforms because, once again, certain policies are being forced on the people," he said. "This is a disrespectful way to proceed with regard to our people.”
He predicted that Russians will continue searching for a sustainable economic formula, which would probably mix free market and socialist policies.
Another report from Moscow adds: Huge credits given to struggling enterprises will help push up Russia's budget deficit in 1992 to around 1.5 trillion rouble (3.4 billion dollar), deputy central bank chairman Alexander Khan-druyev told parliament.
Interfax news agency also quoted him as saying the bank would pursue a much tougher credit policy next year.
The reformist Russian government wants to slash subsidies to Inefficient firms but has clashed with central bank chairman Viktor Gerashchenko, who says enterprises must be kept afloat for the time being to avoid a social explosion.
Money supply has grown 30 per cent a month since July, fuelled by the credits to industry, but there are growing signs the bank is changing Its mind.
One of Its top priorities would be "to strictly curtail the
rates of paper money growth by every means possible," Khandruyev told a hearing on financial stabilisation measures.
He said most of the bank's credits had been granted under favourable conditions, which meant enterprises were paying just over half of the envisaged 80 per cent annual interest rate.
Civic union
Another report adds from New York: The head of Russia's powerful civic union coalition says he doesn't want to hinder President Boris Yeltsin's efforts to privatise the economy, but he does want the approach to be "reasonable."
"I don't want us to commit any stupidities," Arkady Volsky told Newsweek magazine in an interview in Moscow. Excerpts were sent to news media on Sunday In advance of publication today (Monday).
Volksy, whose coalition is believed to control 40 per cent of the conservative 1,000-member Congress of People’s Deputies that opens tomorrow, said he had no political ambitions and was no threat to Yeltsin.
But while he promised the civic union would support acting Prime Minister Yegor Gaidar during the session of the country's supreme legislature, Volsky said the' reformist
premier "doesn't have the ability to rule.
Tf he had a papa looking over his shoulder, it wouldn't be a bad idea.There needs to be someone to do the dirty work."
Referring to a decree put on Yeltsin's desk ordering all enterprises to' prepare their books for privatisation by October 1, Volsky said "the whole country was laughing at it. Only one per cent of the enterprises met the deadline.
"1 don't want the prestige of the President and the government to be lost completely, because this country will end up in chaos as a result. 1 said, folks, don't be stupid. Don't' specify any time frame, that’s communist style...".