Thursday, August 13, 1998 Published at 16:27 GMT 17:27 UK
Russian PM talking tough
Sergei Kiriyenko wants backing for his reform package
The Russian Prime Minister, Sergei Kiriyenko, has ruled out any change in the government's economic policy, in spite of a financial crash that led to the stock market again being suspended.
He said there were no financial grounds for the deterioration in the markets blaming "psychological" reasons.
"I can state quite authoritatively that the government programme has been drawn up - a joint programme of the government and the Central Bank - and the only thing we are doing, and will be doing, is to carry it out unswervingly," he said in comments on Russian television.
The trouble began when billionaire financier George Soros warned that the turmoil in Russia's financial markets had "reached a terminal phase".
Stock markets in Europe tumbled as dealers feared that yet another emerging market was going into meltdown.
Share prices have plunged to a two year low.
Germany has urged Mr Kiriyenko to speed up implementation of the reforms agreed with the International Monetary Fund.
However Mr Kiriyenko needs to persuade the Communist and nationalist-dominated lower house of parliament, the Duma, to back his package of reforms.
Russia's prime minister has urged the Duma to meet as soon as possible.
"The Duma's extraordinary session should go ahead in August," said the premier, referring to the MPs' decision to scrap next Wednesday's two-days of debate.
Mr Kiriyenko is hoping the Duma changes its mind and approves the parts of the package that deputies failed to approve before a summer recess.
In a hopeful sign, Communist Party leader Gennady Zyuganov said that he would, after all, agree to a special parliamentary session as early as next Monday.
"An absolutely urgent situation has arisen," Zyuganov said. "If there is devaluation of the rouble and a collapse of banks the impoverishment of the people will follow."
Moody's Investors Services has downgraded Russia's foreign debt - which will make it more expensive to borrow abroad. It said the outlook remained negative.