Soviets Studying Municipal Bonds

In the spirit of perestroika, the Soviet Union hopes to borrow from the United States a financing technique first used in the early 1800s in New York--municipal bonds.

Officials in the Soviet Union, where no bond market exists, in November signed an agreement with New York economic consultant Jeffrey Sachs to explore ways to use long-term debt to finance infrastructure, environment and housing needs.

Sachs, who has been involved with several New York state and federal public finance projects, said the agreement calls for both sides to set up an advisory team of investment bankers, financial advisers and bond counsel.

The main purpose of the plan is to develop a mechanism for the distribution and sale of bonds in the Soviet Union. Sachs said that, within a year, demonstration projects could be chosen, with actual financing starting in 18 months to two years.