Government's foreign debts falls to $54.6b<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad announced
\nyesterday the government's foreign debt had fallen to $54.6
\nbillion last November from $57.22 billion in September and $59.59
\nbillion at the end of 1995.<\/p>\n
Mar'ie told a House of Representatives' plenary session that
\nthe remaining $54.6 billion debt had a cumulative interest value
\nof $21.4 billion.<\/p>\n
The minister did not disclose the value of private foreign
\ndebt.<\/p>\n
Bank Indonesia Governor J. Soedradjad Djiwandono revealed
\nearlier this month that the country's total foreign debt had
\nreached about US$110 billion, indicating that private foreign
\ndebt was about $55 billion.<\/p>\n
Mar'ie said yesterday the reduction in the government's
\nforeign debt was caused mainly by early repayments of high-
\ninterest debts and a sharp depreciation of the Japanese yen
\nagainst the U.S. dollar.<\/p>\n
"The government appreciates the House's support for the
\ngovernment's policy of repaying some of our external debts,
\nespecially those with high interest," Mar'ie told the session
\ndeliberating the 1997\/1998 budget.<\/p>\n
When explaining the budget to journalists earlier this month,
\nMarie said the government had repaid $2.6 billion in foreign debt
\nahead of schedule since the 1994\/1995 fiscal year, saving the
\ngovernment Rp 1.45 billion in interest payments.<\/p>\n
Mar'ie said yesterday the government had repaid its high-
\ninterest loans with budget surpluses and proceeds from the sale
\nof government shares in state enterprises.<\/p>\n
He said the government repaid in the 1994\/1995 fiscal year
\ndebt bearing interest of 11 percent or more with proceeds from
\nthe sale of shares in international telecommunications firm PT
\nIndosat.<\/p>\n
In 1995\/1996, the government repaid debts with interest of 10
\npercent or more with proceeds from the privatization of domestic
\ntelecommunications firm PT Telkom and tin miner PT Tambang Timah.<\/p>\n
Last October, the government repaid debt bearing interest of 9
\npercent or more with funds from budget surpluses.<\/p>\n
And last December, the government proposed to settle its debts
\nwith interest of 8 percent or more to the World Bank and Asian
\nDevelopment Bank, using proceeds from another sale of Telkom
\nshares on overseas markets.<\/p>\n
Mar'ie said the government would continue to repay its high-
\ninterest loans in coming years.<\/p>\n
"Like in the past, the funds to repay our debts will come from
\nthe sale of government shares in state firms and budget
\nsurpluses," Mar'ie said.<\/p>\n
The minister said last November that depreciation of the
\nJapanese yen against the U.S. greenback had reduced the
\ngovernment's foreign debt exposure.<\/p>\n
The country's yen-denominated offshore debt, which accounts
\nfor about 40 percent of its total foreign debt, fell to US$22.4
\nbillion in September from $24.03 billion in December 1995.<\/p>\n
The dollar was worth about 100 yen in December 1995 after
\ndipping to its lowest level, about 80 yen, several months before.
\nThe dollar has continued to recover, and was worth 119.50 yen
\nyesterday.<\/p>\n
Although the government's external debt was decreasing, Mar'ie
\nsaid, the country's debt service ratio -- the ratio of foreign
\ndebt servicing to export revenue -- would not reach the 25
\npercent target by 1999 because of increasing private debt.<\/p>\n
Mar'ie said Indonesia's debt service ratio would reach 31.7
\npercent by the end of the 1996\/1997 fiscal year, of which
\ngovernment debt would contribute 14.1 percent, private debt 15.5
\npercent and state enterprise debt 2.1 percent.<\/p>\n
In the next fiscal year, beginning in April, the country's
\ndebt service ratio is projected to reach 31.2 percent, with the
\ngovernment contributing 11.8 percent, private sector contributing
\n17.8 percent and state firms contributing 1.6 percent.<\/p>\n
"Our national debt service ratio, although decreasing, is yet
\nto reach the target (of 25 percent) set in the Five-Year
\nDevelopment Plan (ending in March 1997)," Mar'ie said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/governments-foreign-debts-falls-to-546b-1447893297",
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