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Rubin stumps for IMF
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June 1, 1998: 8:28 p.m. ET
Treasury chief says organization must have sufficient funding to get stability
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NEW YORK (CNNfn) - Treasury Secretary Robert Rubin Monday called on Congress to approve additional money for the International Monetary Fund to help ease various financial crises around the world.
Rubin's call to action came just after Russian stocks dropped more than 10 percent, bringing their losses to 44 percent since May.
To help ease the crisis, the IMF Friday said it would give Russia another $670 million of the $9.2 billion it has agreed to lend the nation by the end of June.
Meanwhile, Russia's tax chief said Monday the country has enough cash reserves to protect the ruble against devaluation, but stressed that up to $5 billion more from the IMF would be needed to calm investor fears.
Appearing Monday on "Moneyline With Lou Dobbs," Rubin said the Clinton administration feels the best way to help Russia is to work with that country's government and financial institutions and through the Group of Seven industrial nations.
"Our focus has been working with Russia, the G7, World Bank and IMF with respect to [Russia's] financial situation and the reforms they would need to take to be successful and get financing," he said.
Rubin said he thinks the Clinton Administration's response to the various financial crises around the world has been decisive and fast.
He said the House must follow the lead of the Senate and approve additional money for the IMF.
"This is a complicated situation and the world will have to work through it. This is why we're urging Congress to pass additional funding for the IMF. It's critical that the House act quickly. Thus far, it has been bottlenecked and that's against our national interest.
"This is a complicated and unprecedented situation we face in the world and we need to be armed with the financing necessary to have financial stability. That will take time," he said.
Rubin said the United States' economy should remain on track unless the crises in Russia and other nations working through difficult times substantially worsen. (359K WAV) or (359K AIFF)
The problems around the world, Rubin said, are attributable to a large number of transitioning economies around the world. He said they underscore the fact that one nation's problems can impact another country quickly.
"You've seen that over the last two or three years. That's what makes it so important for us to reestablish financial stability. That only happens if the right reforms are implemented," he said. 
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