Govt confirms RI seeking debt relief<\/p>\n
JAKARTA (JP): Minister of Finance Boediono confirmed on
\nTuesday that Indonesia would seek debt relief from international
\ncreditor nations, especially those grouped in the Paris Club, in
\norder to ease pressure on the 2002 state budget.<\/p>\n
\"I don't want to use the word haircut, but we are seeking debt
\nrelief from the Paris Club donor countries,\" Boediono told
\nreporters on the sidelines of a hearing with the House of
\nRepresentatives' Commission IX on the state budget and finance.<\/p>\n
Boediono was asked to respond to a statement made by Vice
\nPresident Hamzah Haz on Monday that Indonesia would seek a
\nreduction in its debt from international donor countries in order
\nto ease pressure on the state budget.<\/p>\n
\"We have to convince donor countries that Indonesia is in dire
\nneed of debt rescheduling and relief,\" Hamzah was quoted as
\nsaying by the Young Indonesian Entrepreneurs' Association (Hipmi)
\nchairman Haryadi Sukamdani.<\/p>\n
Boediono said the government would try its best to secure
\ndebt relief from the Paris Club donor countries, but refused to
\ncall it a debt haircut.<\/p>\n
\"Debt relief could also mean delaying the payment of our debt
\nto the Paris Club donors,\" said Boediono, adding that the move
\nwas taken in view of President Megawati Soekarnoputri's appeal to
\ninternational donor countries to give Indonesia some breathing
\nspace in honoring its international obligations.<\/p>\n
Indonesia's sovereign debt is estimated at around US$70
\nbillion.<\/p>\n
State Minister for Development Planning\/Chairman of the
\nNational Development Planning Board (Bappenas) Kwik Kian Gie also
\nadmitted on Tuesday that the government had long been seeking
\ndebt relief from donor countries.<\/p>\n
\"But the request was vehemently rejected by donor countries,
\nwho argued that Indonesia was not entitled to a haircut,\" Kwik
\nsaid on Tuesday as quoted by Detik.com.<\/p>\n
According to Kwik, Indonesia could request a debt reduction,
\n\"but if Indonesia unilaterally decides not to service its debt,
\nan economic embargo would immediately be imposed on it and not a
\nsingle dollar would flow into the country either from the
\nConsultative Group on Indonesia, the World Bank or the
\nInternational Monetary Fund.\"<\/p>\n
The government is scheduled to meet with the Paris Club early
\nnext year to seek the rescheduling of debts maturing this year
\nand next year.<\/p>\n
Last year, the government agreed with the Paris Club to
\nreschedule some $5.8 billion in sovereign debt maturing between
\n2000 and 2002.<\/p>\n
Separately, senior finance ministry official Sjafruddin
\nTemengung was quoted by Reuters on Tuesday as saying that
\nIndonesia would seek to reschedule an extra $6 billion in foreign
\ndebt maturing between April 2002 and March 2004 through the Paris
\nClub.(tnt\/03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-confirms-ri-seeking-debt-relief-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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