Zee Beam News

MOSCOW, October 20 (RIA Novosti) - Russian President Vladimir Putin met World Bank President Paul Wolfowitz in the Kremlin Thursday for a wide-ranging discussion of economic issues. In particular, the two men focused on the country's financial system, WB loans for housing, judicial reform and special economic zones, G8 summit in Russia, and aid to the Commonwealth of Independent States. Putin said Russia's financial system was highly stable. According to the president, the progress at talks on possible WB loans to Russian regions without any guarantees from the federal center testified to the effect. "I think it is the right thing because the Russian financial system has proved to be highly stable," Putin told Wolfowitz, who became WB president in spring after James Wolfensohn's retirement. Putin also said that the WB had decided to provide a total of $13.5 billion for projects in Russia, which had used only $8 billion. He added that the WB's cooperation with Russian regions was very productive. According to Putin, there are "other projects at the federal level dealing with housing issues, and other vital aspects of the Russian economy and people's life." Wolfowitz, who arrived in Russia for his first official visit in his capacity Tuesday, said he was happy to have the opportunity to visit schools and hospitals outside Moscow to see what the WB could do for the country. Wolfowitz met Wednesday with Minister of Economic Development and Trade German Gref and agreed on a $100 million loan for further judicial reform and special economic zones in Russia in 2006. The WB is already implementing programs in Russia to combat AIDS and TB, to assist judicial reform, and combat corruption. In light of Russia's 2006 presidency in G8, Wolfowitz told Putin he was sure that next summer's G8 summit in St. Petersburg would be successful, but added that he was most interested in how the results of its work could be used for developing countries. Putin urged the WB to support countries of the CIS, because they needed particular attention from the international community. Putin also said he hoped relations between Russia and the WB would remain as good as they were under the previous WB president. Putin regularly met with Wolfensohn during his ten years in the post. Wolfowitz brought a light touch to the meeting by speaking in Russian, which he studied for two years, but then almost immediately switched back to English. He said his father had urged him to study the language to become a good mathematician.