Holland to set up trade facility for RI firms<\/p>\n
JAKARTA (JP): Deputy Prime Minister of the Netherlands Hans
\nvan Mierlo said here yesterday the Dutch government planned to
\nestablish a trade facility to guarantee Indonesian imports.<\/p>\n
"The Netherlands is examining the possibility of setting up,
\nin a multilateral framework, a special trade guarantee facility
\nthat could enable Indonesian companies to continue the production
\nof goods and import necessities," van Mierlo, who is also the
\nDutch foreign minister, said.<\/p>\n
Speaking before the Indonesia-Netherlands Association and
\nForum Indonesia-Netherlands, he said the proposed facility was
\npart of the country's efforts to help rescue Indonesia from the
\neconomic crisis.<\/p>\n
On Feb. 3, Singapore Prime Minister Goh Tok Chong proposed the
\nestablishment of a multilateral committee to guarantee letters of
\ncredit (L\/C) issued by Indonesian banks.<\/p>\n
Indonesian importers have complained that their L\/Cs were
\nrejected by foreign banks for fear that the local banks could not
\nservice their commitments.<\/p>\n
Van Mierlo, who arrived here Tuesday evening for a three-day
\nvisit, said Dutch commercial banks had also pledged to
\nparticipate in order to help settle the Indonesian private
\nsectors' mounting foreign debts.<\/p>\n
The banks participated in a 90-day freeze for foreign loans to
\nIndonesia's private sector. They had also agreed to roll over the
\nloans, he said.<\/p>\n
"ABN\/AMRO (a leading Dutch bank) is very active in Indonesia,
\nand the Steering Committee of Lender Banks, is working on a
\nsolution for restructuring the private debts."<\/p>\n
Van Mierlo is scheduled to meet President Soeharto today.<\/p>\n
Last month, the Indonesian government announced a de facto
\nmoratorium for offshore loans made by the country's private
\nsector, which is estimated to amount to US$73 billion.<\/p>\n
About $23.07 billion of the total is owed by private national
\ncompanies and the remainder by foreign and joint venture firms.<\/p>\n
Government representatives have been asking lender countries
\nsuch as Japan to negotiate the rollover of loans.<\/p>\n
"To a certain extent, the international financial sector has a
\nshared responsibility for supplying credit without sufficient
\nsurveillance," van Mierlo said.<\/p>\n
The Netherlands has contributed more than $300 million as part
\nof the $43-billion bailout package arranged by International
\nMonetary Fund (IMF) to cope with the Indonesian crisis.<\/p>\n
"Furthermore, we have emphasized that further study is needed
\non ways of achieving more equitable burden-sharing among
\ninternational financial institutions, bilateral governments and
\ncommercial creditors," he said, adding that the Dutch government
\nwould follow up on the issue with the IMF.<\/p>\n
Touching on the role of the European Union in the recovery of
\nSoutheast Asian economies, he said the union had no institutional
\nframework to furnish financial support to correct the imbalances
\nof payment in Asia.<\/p>\n
Instead, the European member states channeled their financial
\nassistance through other institution such as the IMF, the G-7 and
\nG-10, he said.<\/p>\n
But countries in the European Union and Southeast Asian region
\ncould further intensify the exchange of thoughts on how Europe
\ncan assist the governments to overcome the crisis, he said. (das)<\/p>",
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"sponsor": "Okusi Associates",
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