Failure of talks with Kazakhstan.

The International Monetary Fund expressed regret at the failure of its latest talks with Kazakhstan on Monday and urged the former Soviet republic to keep interest rates high and push ahead with reforms. "Directors emphasized the positive influence that a comprehensive adjustment program could have on investor confidence," the IMF said in a document summarizing a July 26 review of the Kazakh economy. "Directors regretted that the Kazakh authorities and staff were not able to reach an agreement that would bring the Extended Fund Facility (loan) program back on track. In the present difficult external environment, they encouraged the authorities to formulate without delays an economic program that could be supported by the IMF." It appeared to be the first formal IMF confirmation that Kazakhstan was no longer meeting the terms of a 3-year IMF lending program which expired this month. IMF officials said in May that they planned further talks, but they admitted at the time there were differences on the budget, on government spending and on trade policy.