Govt's foreign debts fall to $57.22 billion<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad revealed
\nyesterday the government's foreign debt had fallen to US$57.22
\nbillion at the end of September from $59.59 billion at the end of
\nlast year.<\/p>\n
Mar'ie reported to the House of Representatives' Budgetary
\nCommission that the foreign debt reduction was caused mainly by
\nthe Japanese yen's depreciation against the U.S. dollar and by
\nearly repayments of high-interest debt.<\/p>\n
\"The recent depreciation of the Japanese yen against the U.S.
\ngreenback has reduced the government's foreign debt exposure,\"
\nMar'ie reported.<\/p>\n
The minister said the country's yen-denominated offshore debt,
\nwhich accounts for about 40 percent of its total foreign debt,
\nfell to US$22.4 billion in September from $24.03 billion in
\nDecember 1995.<\/p>\n
The dollar was worth about 100 yen last December after dipping
\nto its lowest level, about 80 yen, several months before. The
\ndollar has continued to recover, and was worth 112 yen yesterday.<\/p>\n
Mar'ie said Indonesia's debt service ratio, the ratio of
\nforeign debt servicing to export revenue, for the first nine
\nmonths of this year was 34.8 percent, of which the government's
\ndebt contributed 16.3 percent and private debt 18.5 percent.<\/p>\n
An acceptable debt service ratio for a developing country is
\nno more than 25 percent, according to the World Bank.<\/p>\n
Mar'ie did not disclose the value of private foreign debt. He
\nonly said the government would continue to monitor inflows of
\nprivate loans.<\/p>\n
\"Considering that Indonesia follows a free foreign exchange
\nregime, private borrowings by non-bank enterprises are not
\nregulated or restricted,\" Mar'ie said.<\/p>\n
In its efforts to monitor private borrowing, the government
\nrequires that private companies raising loans overseas must
\nreport them to the Minister of Finance or the central bank.<\/p>\n
\"The private sector's willingness to report their commercial
\noffshore borrowings to the government has been increasing
\nalthough not all private enterprises report their borrowings,\"
\nMar'ie said.<\/p>\n
To reduce Indonesia's debt service ratio, Mar'ie said the
\ngovernment would continue to encourage exports and make early
\nrepayments on high-interest debt.<\/p>\n
Mar'ie revealed Monday the government last month paid $540.46
\nmillion of its high-interest debt to multilateral agencies ahead
\nof schedule and would soon amortize another $50.58 million.<\/p>\n
If the government makes these early repayments, it will have
\npaid $2.82 billion of its foreign debt early by the end of the
\ncurrent fiscal year, he said.<\/p>\n
The government repaid its high-interest loans with proceeds
\nfrom the sale of government shares in state-owned companies and
\nfrom budget surpluses.<\/p>\n
\"Like in the current 1996\/1997 budget, the government will
\nalso prepay some of its debts in the 1997\/1998 budget using,
\namong other things, budget surpluses,\" Mar'ie said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govts-foreign-debts-fall-to-5722-billion-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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