IMF Says No Evidence Backs Bush Allegation on Russia Loan

The International Monetary Fund said Thursday it had no evidence to support an allegation by Republican presidential nominee George W. Bush that former Russian Prime Minister Victor Chernomyrdin diverted IMF loans to his own use.

In an exchange about the IMF and the World Bank during the second presidential debate Wednesday night, Bush said there had been a “lot of egregious examples recently” of foreign aid being misused.

“We went into Russia, we said here’s some IMF money. It ended up in Victor Chernomyrdin’s pocket and others. And yet we played like there was reform,” Bush said.

IMF spokesman Thomas Dawson said the agency had no evidence that Chernomyrdin had diverted any IMF loans to his own use. But Dawson said the agency would be ready to look into any allegations anyone cared to bring forward.

Chernomyrdin responded Thursday, saying he would sue Bush. Chernomyrdin, who had been out of office for several months by the time the money reached Moscow, said Bush’s remarks were damaging to his reputation.

The Bush campaign on Thursday stood by the governor’s statements, saying Chernomyrdin had “made a fortune in personal profits” in the Russian oil and gas business while he was a minister of oil and gas and then as prime minister.

Russia owes the IMF about $12 billion for past loans.