Japan considering $1b loan for Indonesia<\/p>\n
TOKYO (Reuters): Japan is considering extending US$1 billion
\nin aid to Indonesia in the form of untied loans to help get the
\ncountry out of its economic crisis, the Export-Import Bank of
\nJapan said yesterday.<\/p>\n
"We are considering extending a two-step untied loan to
\nIndonesia...possibly through the Indonesian central bank," a
\nspokesman for the bank said.<\/p>\n
He said the bank was now working on the loan in line with a
\nJapanese government decision on Feb. 20 to take emergency steps
\nthrough trade finance to help stabilize economies of Southeast
\nAsian nations, particularly Indonesia.<\/p>\n
However the bank spokesman said the Export-Import Bank could
\nnot extend the loan to Indonesia before the International
\nMonetary Fund and Jakarta agree on an economic adjustment
\nprogram.<\/p>\n
"It is necessary for us to look at the situation with the
\nIMF," he said, adding that the bank hoped to extend the loan as
\nsoon as possible after such an agreement was reached.<\/p>\n
A Japanese economic daily, the Nihon Keizai Shimbun, said
\nyesterday that the loans would be extended to the Indonesian
\ncentral bank to provide a source of revenue for a trade-linked
\nfinancial guarantee system, under which firms having difficulties
\nsettling import payments could receive aid.<\/p>\n
Additional emergency Japanese aid to Indonesia, which has been
\nstalled pending negotiations with the IMF, would also be extended
\nas soon as possible,the paper said.<\/p>\n
Indonesia and the IMF have been engaged in discussions about
\nan IMF-brokered economic reform package, with $3 billion due to
\nhave been disbursed on March 15 delayed by a review of Indonesian
\nreforms.<\/p>\n
Expectations are high that a revised economic reform agreement
\nwill be reached soon.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-considering-1b-loan-for-indonesia-1447893297",
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