Govt asks ADB to ease terms on US$600m loan package<\/p>\n
Berni K Moestafa, The Jakarta Post, Jakarta<\/p>\n
A US$600 million loan package from the Asian Development Bank
\n(ADB) is at stake, as the government falls behind in meeting the
\nbank's loan conditions, according to a government official.<\/p>\n
Deputy to the Coordinating Minister for Economy, Syafruddin A.
\nTemenggung said on Monday the government had asked ADB to ease
\nthe conditions it could not meet on time.<\/p>\n
\"Right now, the government is asking the ADB to change the
\nconditions (for disbursement) to something the government can
\nachieve,\" Syafruddin was quoted as saying by Reuters.<\/p>\n
According to him, the government needs ADB's funds by December
\nto help fill this year's gapping state budget deficit.<\/p>\n
ADB's loans will help finance projects covering financial
\nreforms, community development, electricity and industrial
\ncompetitiveness and development of small and medium size
\nenterprises.<\/p>\n
However, the bank has tied its $600 million loans with terms
\nthat may not be realized by the year's end.<\/p>\n
Among them is the deliberation of new laws concerning money
\nlaundering and investment.<\/p>\n
While a bill on money laundering is being discussed by
\nlegislators, the one on investment has yet to be submitted.<\/p>\n
Other requirements were the introduction of new incentives and
\nloosening of trade barriers for foreign investors.<\/p>\n
Syafruddin said that little progress had been made on meeting
\nthese conditions.<\/p>\n
The ADB expects to disburse some $1 billion in loans this
\nyear, of which most would go into poverty alleviation projects.<\/p>\n
The bank said earlier the funds were part of ADB's loan
\npledged during last year's meeting of the Consultative Group on
\nIndonesia (CGI).<\/p>\n
The ADB has committed loans of between $600 million to $1.2
\nbillion annually until 2004. However, the high range of the
\nlending depends on the government's progress in meeting reform
\nprograms.<\/p>\n
Another lender, the World Bank, has emphasized Indonesia's
\nbattle with corruption as a yardstick to review the continuation
\nof its loans.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-asks-adb-to-ease-terms-on-us600m-loan-package-1447893297",
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