Overseas program loans 'off target'<\/p>\n
JAKARTA (JP): Minister of Finance Bambang Subianto said on
\nMonday that realized overseas program loans in the 1998\/1999
\nState Budget ending March 31 were expected to be only Rp 30.31
\ntrillion (about US$35.5 billion), 59 percent off target due to
\ndifficulties in meeting lenders' requirements.<\/p>\n
He said program loans from the Asian Development Bank were
\nexpected to be Rp 13.03 trillion compared to Rp 26.58 trillion
\nstated in the budget, with Rp 12.68 trillion from the World Bank
\ncompared to the Rp 21.26 trillion target.<\/p>\n
\"Slower realization of the program loans was particularly
\ncaused by the difficulties in meeting the requirements of the
\nloans,\" he told a hearing of House Commission VIII on finance and
\nthe state budget.<\/p>\n
He explained that although the government and the lenders
\nsigned loan agreements they would not be effective unless the
\nlegal and administrative requirements of the loans were
\ncompleted.<\/p>\n
\"Completing the requirements has been time consuming which
\noften causes a delay in the disbursement of the loans,\" he said.<\/p>\n
He also said realized overseas project loans amounted to only
\nRp 25.92 trillion, 36.1 percent below target.<\/p>\n
It was partly caused by the slight appreciation in the rupiah
\nagainst the U.S. dollar, he said.<\/p>\n
The state budget assumed an exchange rate of Rp 10,600 to the
\ndollar, but the rupiah hovered at about the Rp 7,500 level for a
\nfew months, and now is trading around Rp 9,000.<\/p>\n
Lower realization of overseas loans affected government
\nrevenue and spending in the 1998\/1999 fiscal budget ending in
\nMarch.<\/p>\n
Bambang told the House last week that actual revenues in the
\nfiscal year were expected to be around Rp 215.1 trillion, or 18.5
\npercent lower than budgeted, while actual spending was estimated
\nat Rp 215.6 trillion, 18.3 percent lower than planned.<\/p>\n
He also said on Monday that foreign loans at state-owned
\ncompanies at the end of 1998 totaled $5.34 billion, in which
\n$1.50 billion was in the form of commercial papers.<\/p>\n
State-owned oil company Pertamina accounts for $3.64 billion
\nand national flag carrier PT Garuda Indonesia $53 million, he
\nsaid. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/overseas-program-loans-off-target-1447893297",
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