Govt wants over $4.1b from CGI<\/p>\n
JAKARTA (JP): The government is likely to ask for more than
\nUS$4.1 billion from donor countries grouped under the
\nConsultative Group on Indonesia (CGI) for the next budget year,
\nciting increasing overseas debt repayments falling due next year.<\/p>\n
State Minister for National Development Planning Kwik Kian Gie
\nsaid on Tuesday that the government could not afford to ask for
\njust $4.1 billion in loans as it had done at last year's CGI
\nmeeting.<\/p>\n
"We can't. Back then the wave of foreign debt repayments had
\nreached its lowest point. But now we can't," Kwik told reporters
\nafter a meeting of economics ministers.<\/p>\n
He declined to say how much the government would ask for.<\/p>\n
Last year, the CGI pledged $4.1 billion in loans and another
\n$500 million in grants to Indonesia.<\/p>\n
Data from Bank Indonesia shows that the government plans to
\nrepay $7.3 billion in foreign debt this year. Another $4.4
\nbillion in short term debts fall due by April of next year.<\/p>\n
The government hopes that the Paris Club of creditor nations
\nat its meeting in September will agree to reschedule $2.8 billion
\nof the Indonesian foreign debt that falls due this year.<\/p>\n
Kwik was also upbeat that the donor countries would accept the
\nloan proposal the government was preparing for them.<\/p>\n
"This time I can say our success at the CGI meeting will be
\n100 percent, meaning that what we need for our 2002 state budget
\nwill be provided by the CGI," he asserted.<\/p>\n
He said he had become optimistic during his talks with local
\nrepresentatives of the CGI donor countries.<\/p>\n
Their mood, he said, had improved following Indonesia's
\nsuccess in restoring its ties with the International Monetary
\nFund (IMF).<\/p>\n
On Monday, the government signed the latest Letter of Intent
\n(LoI) to the IMF, signaling to donor countries that Indonesia's
\neconomy was on the right track.<\/p>\n
The next CGI meeting will be held in November, by which time
\nthe government hopes to have completed the drafting of the 2002
\nstate budget.<\/p>\n
The success of this meeting also depends on the government's
\nability to present a convincing budget to donor countries.(bkm)<\/p>",
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"sponsor": "Okusi Associates",
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