IMF to disburse another $1 billion this month<\/p>\n
JAKARTA (JP): The International Monetary Fund (IMF) will
\ndisburse the next $1 billion loan payment to Indonesia at the end
\nof this month, Coordinating Minister for Economy, Finance and
\nIndustry Ginandjar Kartasasmita said yesterday.<\/p>\n
\"The next loan disbursement will take place in late August,\"
\nGinandjar told reporters after speaking at the National
\nDeliberative Council of the Association of Indigenous Business
\nPeople.<\/p>\n
He said the IMF would hold a board meeting in the coming weeks
\nand by the end of this month the much needed money would be
\nreleased to the country.<\/p>\n
The money will be used to boost the central bank's foreign
\nexchange reserves, he said.<\/p>\n
Indonesia has received $5 billion from the IMF since October.
\nThe fund is leading a $43 billion international bailout package
\nput together to help Jakarta get its economy back on track.<\/p>\n
The fund suspended payments in May following the massive riots
\nwhich led to the resignation of former president Soeharto, but
\nresumed assistance to the country with a $1 billion loan
\ninstallment last month.<\/p>\n
The bailout package is being released in monthly $1 billion
\ninstallments on receipt of satisfactory progress reports on the
\nreform program from the government.<\/p>\n
Economic targets set jointly by the government and the IMF
\nhave had to be revised several times as the economic downturn
\ncontinued to worsen.<\/p>\n
The most recent progress report was sent to the IMF last week
\nfollowing completion of the fund's monthly review of the reform
\nprogram.<\/p>\n
In the most recent progress report, the country's economy was
\nforecast to shrink by 15 percent in the 1998\/1999 fiscal year,
\nhigher than the previous estimate of 12 percent.<\/p>\n
The current account deficit was forecast to reach 8.5 percent
\nof gross domestic product in the current fiscal year.<\/p>\n
Ginandjar said he expected the economy to return to positive
\ngrowth by the year 2000.<\/p>\n
\"Economic growth thereafter will be more sustainable because
\nour economic fundamentals will be stronger and more resistant,\"
\nhe said.<\/p>\n
He said inflation would return to single figures within two
\nyears, and claimed the budget would be balanced again in three
\nyears time.<\/p>\n
The IMF and other donor countries last month pledged to
\nincrease the bailout aid package by $6 billion due to worsening
\nconditions in the Indonesian economy.<\/p>\n
Also last month, countries belonging to the Consultative Group
\non Indonesia (CGI) agreed to provide $7.9 billion in additional
\nfinancial assistance to help the country through its economic
\ndifficulties. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-to-disburse-another-1-billion-this-month-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}