International bond road show starts in Dubai: Boediono<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Minister of Finance Boediono said on Friday that the government
\nwould take advantage of next month's International Monetary and
\nFinance Committee (IFMC) forum in Dubai to help market the
\ncountry's planned US$400 million international bond offering.<\/p>\n
He said that although the IFMC meeting was actually a
\ngovernment-to-government forum, private investors would also be
\npresent at the meeting.<\/p>\n
\"We need the two parties (governments and businesses) so as to
\nstrengthen our position,\" Boediono said. The meeting will take
\nplace on Sept. 21.<\/p>\n
After Dubai, the non-deal road show is expected to continue to
\nother major financial centers in the world such as London,
\nSingapore and New York.<\/p>\n
The government, as stated in its 2004 state budget draft,
\nplans to issue international bonds next year amounting to Rp 3.48
\ntrillion (about $400 million), as part of foreign financing to
\nhelp plug the estimated Rp 24.9 trillion in budget deficit.<\/p>\n
The government is in dire need of extra financing sources
\nfollowing its decision not to extend the IMF's program, which
\ndeprives the country of access to foreign debt relief from the
\nParis Club of creditor nations.<\/p>\n
This financing scheme will come along with other options,
\nincluding optimizing potential revenues from both domestic
\nsources and foreign ones.<\/p>\n
Under the budget draft, however, domestic sources still make
\nup the largest portion in deficit financing, totaling Rp 39.8
\ntrillion.<\/p>\n
The bond issue will be the country's first international bond
\nissue since the 1997 financial crisis. In 1996, the government
\nissued some $400 million worth of Yankee bonds.<\/p>\n
Elsewhere, Boediono also reiterated that during the
\nexpositions, Indonesia would highlight the progress it had made
\nso far in its economic reform program<\/p>\n
That would include also the government's reform program in the
\nfuture without the IMF-supported programs.<\/p>\n
The government is preparing a 'white paper' which contains
\ncrucial economic reform targets in the post-IMF era, which should
\nbe ready by then, he added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/international-bond-road-show-starts-in-dubai-boediono-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}