That ratio has improved steadily to stand now at 83 percent. Successful efforts at both ends are responsible for the improvement. Mr. Wolfensohn discussed with the government two new initiatives that will guide future Bank lending in Russia. First, the Bank will increase the level and share of investment lending for projects such as highways and water supply. Second, an increasing share of lending will support reforms at the regional level.
Local governments have a key role in education, health, housing, and water supply.
The new initiative will provide loans to regions willing to undertake major reforms in the management of public resources. The Bank is committed to a long-term partnership with Russia to support the government's efforts to achieve a stable base for development. These joint efforts will focus on both the social and the financial sectors to bring the benefits of economic development to the Russian people.