IDB urged to ease terms for certain members<\/p>\n
JAKARTA (JP): President Soeharto urged the Islamic Development
\nBank (IDB) yesterday to relax the terms of its assistance for
\nheavily indebted countries.<\/p>\n
The President said that heavy debt burdens have hampered
\neconomic growth in many of the bank's member-countries.<\/p>\n
\"In this connection, we applaud the initiative taken by Kuwait
\nand Saudi Arabia to write off the debts of a number of the bank's
\nmember-states,\" Soeharto said in his speech at the opening of the
\n20th annual meeting of the board of governors of the Jeddah-based
\nIDB.<\/p>\n
Indonesia, which chaired the Non-Alignment Movement (NAM) in
\nthe 1992-1995 period which ended last month, initiated discussion
\non a possible solution to the debt problems of developing
\nnations.<\/p>\n
NAM, now chaired by Colombia, is expected to continue seeking
\na solution to the debt problems, he said.<\/p>\n
The board of the governors will review the bank's activities
\nand its financing operations during the two-day meeting, which
\nwill end today.<\/p>\n
The meeting, attended by about 350 delegates from the bank's
\n48 member-countries, will also elect a new president to replace
\nOsama Jaafar Faquih, who has been appointed Minister of Commerce
\nof Saudi Arabia.<\/p>\n
The main agenda also includes consideration of the
\napplications of Mozambique and Kazakhstan to join the bank and
\nthe approval of the bank's financial reports.<\/p>\n
Cooperation<\/p>\n
In his address, Soeharto also called on the bank's member-
\ncountries to promote economic cooperation both on bilateral and
\nmultilateral bases as an alternative to offset the decline of
\ncapital inflows from developed nations.<\/p>\n
\"The purpose is to see to it that investment and unhindered
\ntrade will stimulate the economic growth of the bank's member
\nstates,\" he said.<\/p>\n
The bank's member-countries should prepare themselves to face
\ntougher competition as a result of economic globalization,
\nSoeharto said.<\/p>\n
\"Whether we like it or not, we have to take part in economic
\nliberalization and free trade, if we don't want to be left
\nbehind,\" the President said.<\/p>\n
IDB, with paid-up capital of about US$8.4 billion, was
\nestablished in 1975 to provide loans and other financing
\nfacilities for member countries under an interest-free mechanism.
\nThe financing facilities are mostly based on profit-sharing
\narrangements.<\/p>\n
Soeharto called on the bank to further expand its mechanisms,
\nwhich conform to Islamic law while remaining compatible with
\nconventional banking systems.<\/p>\n
The bank's acting president Fuad Abdullah al-Omar said that
\nthe IDB is committed to giving greater attention to its least-
\ndeveloped members.<\/p>\n
In his speech at the opening ceremony, Omar said that the bank
\nwould also further enhance its financing facilities for the
\nprivate sector through its financing arms.<\/p>\n
The IDB's board of executive directors approved US$222 million
\nin financial assistance to members and non-member countries
\nduring the preparatory gathering on the eve of the board of
\ngovernors' meeting.<\/p>\n
The lending facilities will be used to finance infrastructure
\nand educational projects in Indonesia, Turkey, Chad, Beirut,
\nMorocco and Qatar.<\/p>\n
Indonesia will receive about $25.46 million of the funds for
\nthe expansion of the Ujungpandang airport in South Sulawesi and
\nanother $12.43 million for the upgrading of air traffic control
\nequipment. (hen)<\/p>\n
Speculation -- Page 8<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idb-urged-to-ease-terms-for-certain-members-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }