IMF sees no obstacle at Paris Club<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Seemingly satisfied with the country's economic reform
\nprograms, the International Monetary Fund (IMF) said there would
\nbe no specific obstacles for the government in seeking a debt
\nrescheduling facility at this week's Paris Club meeting.<\/p>\n
Nevertheless, IMF representative in Jakarta David C. Nellor
\nsaid on Monday that creditor nations in the club would be very
\nmuch interested in the country's progress on reform programs,
\nincluding issues such as the bank liquidity support loans and
\nBank Niaga divestment plan.<\/p>\n
\"There are no specific obstacles, but the creditor nations
\nwill be interested in hearing about the developments on reform
\nprograms and they will no doubt raise some of those issues,\"
\nNellor told reporters.<\/p>\n
The optimism should prove beneficial as the backing of the IMF
\nis seen as crucial to securing a rescheduling facility from the
\nParis Club of creditor nations.<\/p>\n
The government is seeking to reschedule some US$5.5 billion in
\nsovereign debt, both principal and interest, maturing from April
\nthis year to December, 2003. This is crucial to help maintain
\nthe state budget deficit at a safe level.<\/p>\n
The government is currently shouldering a staggering $137
\nbillion in total debt, or around 90 percent of gross domestic
\nproduct, of which $74 billion is owed to foreign lenders.<\/p>\n
Meanwhile, Minister of Finance Boediono also expressed his
\noptimism on Monday that the country would be successful in
\nsecuring a rescheduling deal from the official creditors, as he
\nhas seen strong support during his recent tour to several donor
\ncountries.<\/p>\n
\"There are no problems at all; God willing, I think we can
\nmake it,\" Boediono said.<\/p>\n
He said that the government had completed all preparations for
\nthe Paris Club meeting.<\/p>\n
\"We have completed the final preparations and our technical
\nteam is in Paris,\" he said.<\/p>\n
He declined to elaborate on the final amount of debt to be
\nrescheduled or reports that the government wanted to extend the
\ndebt for 20 years.<\/p>\n
Boediono will leave for Paris late on Tuesday. Negotiations
\nwith creditors are scheduled to take place on Thursday and
\nFriday.<\/p>\n
The IMF sponsors the country's economic reform program under a
\n$5 billion loan package.<\/p>\n
The government has been making progress in implementing key
\nreforms, particularly with the recent sale of its stake in Bank
\nCentral Asia (BCA), the country's largest retail bank.<\/p>\n
The government has also obtained House of Representatives
\napproval for its 2002 privatization plan. The House has also
\napproved a key anti money-laundering bill.<\/p>\n
The financial market has been in a positive mood on
\nexpectations of a successful outcome from the Paris Club meet.
\nThe rupiah extended last week's gain on Monday's closing at Rp
\n9,525 per U.S. dollar, from Rp 9,560 last Friday. The stock
\nmarket has also been bullish recently.<\/p>",
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