A cut in RI aid could hit Bangkok<\/p>\n
BANGKOK (AFP): The IMF has warned Thailand that its bid to
\nease its economic woes could be hit by fallout if the world body
\nis forced to suspend Indonesia's rescue package, the finance
\nminister said yesterday.<\/p>\n
\"We have received warning from the IMF (International Monetary
\nFund) to prepare well and to put in place cushioning measures in
\ncase of any adverse effects,\" Tarrin Nimmanahaeminda told
\nreporters here.<\/p>\n
The comments came after Indonesia said it would launch a new
\nforeign exchange system re-pegging the flagging Indonesian rupiah
\nto other currencies, a move which the IMF has strongly opposed.<\/p>\n
The monetary body, which has come to the rescue of Thailand,
\nIndonesia and South Korea, extending billions of dollars in
\nbailout loans as the once booming economies stumbled, said it
\nwould reconsider its aid to Indonesia if the currency board
\nsystem is adopted.<\/p>\n
But Tarrin said the system had not yet been adopted by
\nJakarta, \"so we will have to wait and see what they actually do
\ndecide.\"<\/p>\n
The regional crisis started in Thailand when it devalued its
\ncurrency last July, and the contagion quickly spread across the
\nonce thriving region.<\/p>\n
A top IMF official last week gave Thailand the thumbs up for
\nits efforts to steady its rickety economy, saying it had \"turned
\nthe corner of the crisis, but said Indonesia was still in
\n\"intensive care.\"<\/p>\n
Meanwhile in Singapore, U.S. Commerce Secretary William Daley
\nreaffirmed yesterday Washington's opposition to Indonesia's plan
\nto peg its currency in the short-term, indicating Jakarta should
\nfirst stabilize its economy.<\/p>\n
\"At some later point down the road, when everything is back in
\norder, it's obviously up to the Indonesian government to deal
\nwith that. But right now at this moment of difficulty that is not
\nthe way to go,\" Daley said at a news conference.<\/p>\n
Daley said the proposed currency board system, which would peg
\nthe Indonesian rupiah to the U.S. dollar at a fixed rate, \"may
\nnot have merits at the immediate moment.\"<\/p>\n
\"I think we've been very clear in our statements of basically
\nagreeing with the IMF in their comments on the exchange board,\"
\nhe said, referring to strongly worded International Monetary Fund
\nwarnings since last week.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/a-cut-in-ri-aid-could-hit-bangkok-1447893297",
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