ADB mulls US$500m loan to help Indonesia's poor<\/p>\n
HONG KONG (Reuters): The Asian Development Bank is considering
\nextending a US$500 million loan to help Indonesians most affected
\nby the financial crisis, ADB president Mitsuo Sato said
\nyesterday.<\/p>\n
Sato said the loan would be similar to a facility extended to
\nThailand in March.<\/p>\n
The US$500 million loan to Thailand was a contribution to the
\ncountry's Social Sector Program designed to mitigate the effects
\nof economic crisis, particularly on the poor.<\/p>\n
\"We provided $500 million to Thailand for social assistance to
\npeople disrupted by the crisis, including the unemployed. A
\nsimilar loan might be done for Indonesia, but it has not yet been
\ndecided,\" Sato told reporters at a financial conference.<\/p>\n
The loan to Thailand was from the ADB's ordinary capital
\nresources and was to be released in two tranches. The first
\ntranche of $300 million was to be released immediately, the ADB
\nsaid on March 12, while the other tranche of $200 million was to
\nbe released 10-12 months later.<\/p>\n
Sato said he was not worried that social unrest in Indonesia
\nwould derail implementation of the International Monetary Fund
\nplan.<\/p>\n
He said Indonesian government authorities were \"very committed
\nto achieve the reform program\".<\/p>\n
Protests in the North Sumatra capital of Medan turned violent
\nfollowing an announcement on Monday that prices of fuel,
\ntransport and electricity would be raised.<\/p>\n
The ADB president said he did not believe the social
\ndifficulties in Indonesia would set off another round of currency
\nturmoil in the region.<\/p>\n
The rupiah was trading at 9,200\/400 per U.S. dollar in late
\nmorning trade on Thursday. The rupiah closed at 8,850\/950 on
\nWednesday after falling nearly 10 percent in one day.<\/p>",
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