IMF to mull debt relief for RI<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The International Monetary Fund (IMF) has joined the increasing
\nnumber of creditors willing to consider granting Indonesia debt
\nrelief to help cushion the massive financial impact of the Aceh
\nand North Sumatra calamity.<\/p>\n
An IMF official, speaking on condition of anonymity, said on
\nWednesday in Washington that the agency would be willing to talk
\nabout debt rescheduling with Indonesia.<\/p>\n
Indonesia owes the agency some US$9.9 billion as of April
\n2004.<\/p>\n
\"We are offering whatever assistance we can give and
\nindicating to them that, when they feel that they can turn to how
\nwe might help, we will be there,\" he said as reported by AFP.<\/p>\n
Some $1.5 billion of the debt is expected to mature in 2005.<\/p>\n
The IMF, which consists of 184 member countries and has $97
\nbillion in loans outstanding to 84 nations, would be ready to
\nconsider adjusting loan repayments by Indonesia, the official
\nadded.<\/p>\n
According to Bloomberg, the Washington-based global lender may
\nalso provide emergency disaster funds to other affected countries
\nsuch as Sri Lanka, Thailand, the Seychelles and Malaysia.<\/p>\n
Tsunami as high as 10 meters swept through coastlines across
\nthe Indian Ocean on Dec. 26, triggered by a powerful magnitude
\n9.0 earthquake off the coast of Indonesia.<\/p>\n
The death count in Indonesia's two provinces alone has reached
\nmore than 80,000.<\/p>\n
As body counting continues, a huge amount of money will also
\nhave to be set aside to help deal with the tragedy, both for
\nhumanitarian aid to the victims as well as for financing the
\nrebuilding of severely-damaged infrastructure in the area.<\/p>\n
\"There has never been anything this sweeping,\" for the IMF to
\ngrapple with, the official said. \"There has never been a disaster
\nas horrific as this in terms of its multi-country impact and
\nmagnitude.\"<\/p>\n
The IMF's offer comes after Italy, Germany, and the U.S.
\nearlier indicated their willingness to consider offering debt
\nrelief to tragedy-hit countries, including Indonesia.<\/p>\n
In a statement, Italian prime minister Silvio Berlusconi said
\nhe would \"study the possibility of canceling aid credits owed by
\naffected Asian nations\".<\/p>\n
Germany said it would propose a debt moratorium for Indonesia
\nand Somalia when the Paris Club of creditor nations next meets on
\nJan. 20, while U.S. president George Bush also stated the U.S.
\nwould be \"open to all requests\" to help suffering nations cope
\nwith the tragedy.<\/p>\n
Meanwhile in Jakarta, Minister for Finance Yusuf Anwar on
\nThursday welcomed calls for a moratorium on the country's debt
\nrepayments, including the one proposed by Germany.<\/p>\n
\"That is very good if it is true, as it shows international
\nefforts to alleviate our fiscal burden and reduce our debt
\nservicing as well reducing our interest payments,\" Yusuf said.<\/p>\n
He added that the government would immediately follow up on
\nthe offer by arranging bilateral talks with creditors, including
\nthose grouped under the Paris Club, a grouping of 19 creditor
\nnations and multinational institutions.<\/p>\n
Indonesia's total foreign debt stood at $82.1 billion as of
\nthe first quarter of 2004, according to central bank data, with
\naround half of this owed to Paris Club nations.<\/p>\n
Under the 2004 state budget, for servicing interest payments
\non foreign debt alone, the government has to set aside some Rp
\n23.4 trillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-to-mull-debt-relief-for-ri-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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