EU studying credit quarantee offers<\/p>\n
SINGAPORE (AFP): Credit guarantees proposed by developed
\nnations to spur trade in crisis-hit Indonesia need to be examined
\nto avoid overlaps, British Prime Minister Tony Blair's special
\nenvoy said yesterday.<\/p>\n
Derek Fatchett, also special representative of the European
\nUnion (EU), said the EU was reviewing a proposal by Singapore
\nPrime Minister Goh Chok Tong in February to help Indonesia
\nacquire up to US$20 billion worth of multilateral guarantees to
\npay for imports.<\/p>\n
Goh's initiative was followed by a similar initiative by the
\nGroup of Seven (G-7) finance ministers in London for its member
\nnations and 11 other countries to provide an export credit
\nguarantee system.<\/p>\n
\"We are still discussing the extent to which there is the
\noverlap between the Singapore idea and the G-7 plus idea,\"
\nFatchett said at a news briefing here.<\/p>\n
\"What we mustn't do is to get overlap on too many schemes. We
\nneed to be focused,\" said Fatchett, who is also Britain's
\nMinister of State for Foreign Affairs.<\/p>\n
Fatchett explained the export credit guarantee system proposed
\nby the G-7 gives a guarantee to trade exports from the
\nparticipating countries into Indonesia and other Asian countries.<\/p>\n
\"There is no need to put a figure on it,\" since the credit
\nguarantees were being discussed on a \"case-to-case basis,\" he
\nsaid.<\/p>\n
\"But the most important factor is it shows the confidence that
\n18 countries have in this region,\" Fatchett said.<\/p>\n
Fatchett is leading a delegation from the EU, whose rotating
\nchair is held by Britain.<\/p>\n
Fatchett emphasized the implementation of Singapore or the G-
\n7's initiatives for trade credit guarantees depended on
\nIndonesia's adherence to the reforms mandated under the
\nInternational Monetary Fund (IMF) program.<\/p>\n
This point had been expressed here on Tuesday by the director
\nof the Treasury of France, Jean Lemierre.<\/p>\n
\"The French, Singaporeans, and everybody will be on board with
\nthat point. There isn't any difference between us,\" Fatchett
\nsaid.<\/p>\n
\"Where it has been agreed that IMF programs are necessary, we
\nfirmly believe their early implementation is crucial,\" he said.<\/p>\n
\"The last thing we want to see are barriers and protectionism
\nspringing up particularly in the countries facing the more severe
\nproblems,\" he said.<\/p>\n
\"The region's problems will be at the top of the ASEM agenda.
\nWe aim to ensure that the summit makes a positive contribution to
\nits solution,\" he added.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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