IMF says $41b deal enough for RI<\/p>\n
WASHINGTON (Reuters): Indonesia's existing US$41 billion
\nrescue package from the international community will likely be
\nenough to meet a financing gap forecast in the country's latest
\nInternational Monetary Fund plan, the IMF's second most senior
\nofficial said on Monday.<\/p>\n
\"I do not think it is an enlargement of the package,\" First
\nDeputy Managing Director Stanley Fischer told Reuters in an
\ninterview. \"We are going to go to the same people in the
\nprogram to provide the extra funding. I do not think that this is
\nbeing added to the commitments.\"<\/p>\n
The rescue package, agreed last November and renegotiated on
\nseveral occasions, comprises both a first line of defense of
\nloans from the IMF and other multilateral donors and a second
\nline of defense of bilateral aid.<\/p>\n
The United States promised $3 billion for this second line of
\ndefense, but this money, like that of other country donors, has
\nnot yet been handed over.<\/p>\n
Indonesia's latest deal with the IMF said that the country
\nwould need $4-6 billion in loans to repair the damage caused by
\nweeks of social unrest and political upheaval.<\/p>\n
He also said Japan's economic weakness has deepened and
\nlengthened Asia's financial crisis more than anyone expected,
\nrobbing the ailing tigers of a crucial export market.<\/p>\n
Fischer said that Japan's ability to recover from its own
\nrecession and from deep financial sector woes was \"one of the
\nreally important factors in East Asia.\" He said the crisis had
\nspread rapidly because many of the countries shared similar
\nproblems.<\/p>\n
\"The weakness in the Japanese economy and the drag it exerted
\non the Asian economies was not appreciated at the time,\" he said
\nin an interview marking the first anniversary of the start of the
\nAsian economic storm.<\/p>",
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