WASHINGTON. Aug 7: The World Bank approved 1.5 billion dollars loan to Russia on Thursday to help the financially-troubled nation move more rapidly to restructure its economy, says AP.

The loan Is part of a 22.6 billion dollars emergency rescue package that the International Monetary Fund, the bank and the Japanese government negotiated with Russia last month.

The bank loan, the largest it has ever made in Europe and Central Asia, will be paid in installments. with amounts going up as Russia meets a series of increasingly difficult economic benchmarks reforms, bank officials said.

These include measures to increase tax collection, more closely regulate the country’s oil and gas monopolies, promote development of the private sector and reform the banking system. The first payment of 300 million dollars will be made immediately with 500 million dollars set to be paid by the end of the year and 700 million dollars in June of 1999.

Johnannes Linn, bank vice president for Europe and Central Asia, said approval by the bank’s 24-member executive board was unanimous. Linn signed the loan agreement with Russian Ambassador Yuli Vorontsov."

"Implementation of the structural reform programme is the key." Linn said. "We will monitor the changes closely to be certain the measures' proceed on time."

In the past Russia 1.^3 been slow in carrying out reforms agreed to as conditions for obtaining loans from the World Bank, the IMF and other lending organisations.

Bank officials said there would be no further lending this year to Russia for economic reform but they would hold talks with Russian officials on a possible six billion dollars package in 1999.

The reform loans are separate from 41 development and social projects worth 11.4 billion dollars the bank finances in Russia. Bank officials said agreement was possible later this year on 400 million dollars loan to develop highways.

In Moscow. Prime Minister Sergei Kiriyenko said in an interview published Wednesday the country's finances were improving gradually after nearing disaster.

The country was nearing the edge." he said in an interview with the Moskovsky Komsomolets newspaper. "We have made a step back but have not run far way from the precipice."

He said the government had not had to spend any of the 4.8 billion dollars it received last month from the IMF and had used the money to increase central bank reserves.