FINANCIAL BRIEFS

FINANCIAL BRIEFS

POEHL SAYS PRESSURE

ON BUNDESBANK EASESFRANKFURT, West Germany - Karl Otto Poehl, Bundesbank president, said the current level of real interest rates in the financial markets have taken

pressure off the Bundesbank to tighten policy in light of risks involved with currency union.

In a speech prepared for delivery Thursday before the Association of West German Banks, Mr. Poehl said, "The markets have taken away some of our work, as monetary conditions have tightened in response to the internal and external risks to stability."

COORDINATION URGED

FOR AID TO EAST BLOC

LONDON - Western democracies must step up coordination of their help for Eastern Europe to ensure the unprecedented transition from communist economics to the free market succeeds, a respected think tank said Thursday.

Researchers at the Royal Institute of International Affairs warned that the West faced a potentially serious problem of coordination as 24 governments and up to seven multilateral agencies sought to support economic and democratic reform.

"The scope for duplication, conflicting action and other forms of wasteful behavior is enormous," Jim Rollo, head of the institute's international economics program, wrote in a study.

"The risks involved in wasting the time of the relatively small number of people who actually can change anything in Eastern Europe are high; there is a danger of bureaucratic fatigue in the recipient countries."

IMF CHIEF EXPECTS

INCREASE IN FUNDING

WASHINGTON - Michel Camdessus, managing director of the International Monetary Fund, said he believes the agency's powerful policy-making Interim Committee would reach a long-awaited funding agreement when it meets early next month.

Meeting briefly with reporters Wednesday following an address to a conference held by the Bretton Woods Committee, a private group that monitors development activities, Mr. Camdessus said it appeared that the funding increase would be in the lower part of a range of between 50 percent and 70 percent.

The World Bank and IMF hold their spring meeting that brings together the economic leadership of its 152 member-countries in Washington May 4-8.

JAPAN NOT IN LOCKSTEP

WITH OTHERS' RATES

TOKYO - The Bank of Japan will not come under immediate pressure to raise its discount rate if other major countries hike theirs, although the yen could weaken as a result, further complicating the Bank of Japan's position.

Yasushi Mieno, governor of the Bank of Japan, said at a press conference Thursday that the central bank is unlikely to raise its discount rate just

because West Germany boosts its key rate to stem inflationary pressures.

While a decision by one central bank may affect financial markets in other countries, each country basically makes its own monetary decisions in accordance with its own economic situation, he said.

PAN-GERMAN GROWTH

TO COVER UNITY COSTS

BONN, West Germany - Increased economic growth in both West and East Germany will provide the main source of finance for the costs of unification, Theo Waigel, West Germany's finance minister, said Thursday.

In a speech prepared for delivery before the Association of West German Banks here, Mr. Waigel said German monetary and economic union will boost East German economic growth, permitting an increasing part of the public budgetary burden to be financed out of East Germany.