RI has secured $4.4b in foreign loans: Bambang<\/p>\n
JAKARTA (JP): Finance Minister Bambang Subianto said on
\nTuesday Indonesia had secured US$4.4 billion out of the $6.32
\nbillion in overseas loans needed to plug the 1999\/2000 state
\nbudget deficit.<\/p>\n
Bambang said the World Bank and the Asian Development Bank
\nhave committed $1 billion each, while Japan has pledged an
\nequivalent of $2.4 billion through the so-called Miyazawa Plan.<\/p>\n
\"We will try to obtain the shortfall at the Consultative Group
\non Indonesia (CGI) meeting in June,\" he told the House of
\nRepresentatives commission VIII on state budget and finance
\nduring a debate on the draft state budget.<\/p>\n
The 1999\/2000 budget is expected to be approved by the House
\non Feb.26.<\/p>\n
Bambang expressed optimism that the CGI donor group would
\nprovide the remaining $1.9 billion shortfall despite major
\nrequests for aid from other crisis-hit nations.<\/p>\n
\"The creditors have so far indicated their commitment to
\nhelping Indonesia quickly come out of the current crisis,\" he
\nsaid.<\/p>\n
Bambang said that to win international support the government
\nwould consistently service its foreign debts according to the
\nagreed schedules and would not seek another debt rescheduling
\nfacility.<\/p>\n
\"If we ask for another debt renegotiation, the results of last
\nSeptember's meeting will be invalid,\" he pointed out.<\/p>\n
The government received the nod from the Paris Club government
\ncreditors in September to reschedule some $4.51 billion in
\nprincipal payments on its debts due between August 6, 1998 and
\nMarch 31, 2000, to a period of between 11 and 20 years.<\/p>\n
Bambang said that it was the maximum debt rescheduling the
\ncountry could have obtained.<\/p>\n
Separately, the Coordinating Minister for Economy, Finance,
\nand Industry Ginandjar Kartasasmita said on Monday in Washington
\nthat Indonesia was asking the International Monetary Fund for an
\nadditional $1 billion to add to the $11.3 billion the fund had
\nalready committed.<\/p>\n
He told reporters after a meeting with IMF's managing director
\nMichel Camdessus that the release of the extra funding was a
\ncondition for the disbursement of the $2.4 billion loan of the
\nMiyazawa Plan which was pledged by the Japanese government
\nearlier this month.<\/p>\n
The $30 billion Miyazawa Plan is a bailout funding scheme
\npromised by Japan last year to help the crisis-hit Southeast
\nAsian nations.<\/p>\n
Ginandjar said extra IMF funding and the earlier availability
\nof World Bank loans would provide added support to Indonesia
\nuntil the expected economic recovery in the second half of the
\nfiscal year beginning April 1.<\/p>\n
Ginandjar added that the Camdessus was \"very positive\" in his
\nreaction to his request for extra funds from the IMF and that he
\nwill now take the proposition to the IMF board for approval.<\/p>\n
The IMF has already augmented its original $10-billion
\ncontribution to the Indonesian rescue package by adding another
\n$1 billion and so far the Indonesian government has drawn down $9
\nbillion of the total.<\/p>\n
Indonesia needs a total of $10.32 billion in overseas loans to
\nhelp plug the 1999\/2000 state budget deficit, comprising $6.32 in
\nprogram loans and $4 billion in project loans.<\/p>\n
Bambang said that $4 billion in project loans had already been
\nsecured as they are mostly part of the financing for ongoing
\ngovernment projects.<\/p>\n
He said that the project loans had been pledged by the World
\nBank ($627.7 million), Germany ($302.36 million), Japan ($1.59
\nbillion), and France ($82.5 million). (rei)<\/p>",
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"sponsor": "Okusi Associates",
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