Mar'ie and Rubin discuss RI's IMF package<\/p>\n
WASHINGTON (AP): U.S. Treasury Secretary Robert Rubin and
\nIndonesian Finance Minister Mar'ie Muhammad on Thursday discussed
\nimplementation of a US$23 billion rescue package the IMF arranged
\nfor Indonesia in October.<\/p>\n
\"The minister expressed his recognition of the central
\nimportance of Indonesian policy commitments and carrying them
\nthrough,\" a Treasury spokeswoman said.<\/p>\n
Mar'ie gave U.S. businessmen a similar message at a meeting
\nWednesday at the Indonesian embassy and heads to New York Friday
\nto meet financial leaders.<\/p>\n
The finance minister said the government would not backtrack
\non reforms in an attempt to boost the Indonesian economy,
\npledging instead to continue with the agenda set by the
\nInternational Monetary Fund, according to the account provided by
\nthe participant, who declined to be identified.<\/p>\n
a Treasury spokeswoman said that the Indonesian minister
\nexpressed his recognition of the central importance of Indonesian
\npolicy commitments and carrying them through.<\/p>\n
As Asian economies ran into difficulties this summer, the IMF
\narranged rescue packages for Thailand, Indonesia and South Korea.<\/p>\n
Rubin also called on South Korea Thursday to implement the
\nreforms it agreed upon last week in exchange for a $57 billion
\ninternational bailout.<\/p>\n
\"They have taken a number of very important measures and they
\nhave a lot to do and that's the process that's under way,\" Rubin
\nsaid while posing for photographers at the start of a meeting
\nwith the Indonesian finance minister.<\/p>\n
Earlier Thursday, South Korea's lame-duck president, Kim
\nYoung-sam, and his finance minister tried to reassure investors
\ntheir nation will stick by its deal with the International
\nMonetary Fund, whatever the pain.<\/p>\n
Their assurances came as South Korea's currency and stock
\nmarket continued to plummet on concerns that the austerity
\nmeasures included in the record IMF rescue will bring more
\nbankruptcies, the loss of up to a million jobs, higher taxes and
\nlabor strife.<\/p>\n
Investor fears have been heightened by statements from two of
\nthe three leading candidates in South Korea's presidential
\nelection next Thursday that they would try to renegotiate the IMF
\nagreement if they win.<\/p>\n
Asked if he was worried about the possibility of Korea
\ndefaulting, Rubin said, \"They've got a strong program with the
\nIMF, and I think that the key is for them to implement that
\nprogram and implement it effectively.\"<\/p>\n
\"That's the process we're all discussing with Korea right
\nnow,\" he said.<\/p>\n
South Korean Finance Minister Lim Chang-yuel said in a New
\nYork Times interview Tuesday that Korea would like the United
\nStates and Japan to speed up the provision of money the countries
\nhave earmarked as back-up assistance should IMF lending prove
\ninadequate.<\/p>\n
But Rubin told reporters a request for a short-term loan from
\nKorea had not reached his desk and side-stepped the question of
\nwhether the United States would consider one.<\/p>\n
He repeated that Korean implementation of the IMF program was
\n\"the absolute key to ... re-establishing confidence in the
\nfinancial market.\"<\/p>\n
\"They've taken important steps but there's a lot that remains
\nto be done and that is the key to success,\" he said.
\nKorea's currency, the won, dropped 10 percent Thursday - the
\nmaximum permitted by the nation's financial regulators. Stocks
\nfell 5.6 percent.<\/p>",
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"sponsor": "Okusi Associates",
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