U.S. Exim Bank doing no new business here<\/p>\n
HONG KONG (Dow Jones): One of the few U.S. government agencies
\nthat could help rescue beleaguered Indonesian companies from the
\nravages of Asia's currency crisis says it hasn't been able to
\nprovide any financial assistance.<\/p>\n
In May, the Export-Import Bank of the U.S. announced a US$1
\nbillion package to help support U.S. exports to Indonesia. But
\nsince then, the bank hasn't done any new business under the
\npackage, said the bank's chairman, James Harmon, in an interview
\nwith Dow Jones. A spokesman for the bank said that he believed
\nthe bank had done no business at all in Indonesia during the
\nfinancial year that began on Oct. 1, 1997.<\/p>\n
Assistance from the Exim bank could provide a crucial shot in
\nthe arm for many Indonesian corporations which are in dire
\nstraits because they can't afford to buy U.S. or other foreign
\ngoods following the sharp plunge in the rupiah's value. The Exim
\nbank provides loans, guarantees and other support to overseas
\ncountries that want to buy U.S. exports. In the 12 months ending
\nSept. 30, the Exim Bank has so far supported about $15 billion in
\nU.S. exports worldwide.<\/p>\n
Harmon said that after an initial agreement was reached in May
\nbetween Washington and Jakarta, the Indonesian government was
\n\"supposed to come back to us to finalize the agreement.\" Harmon
\nattributed the lack of progress from Jakarta to the subsequent
\nchange in government, in which B.J. Habibie took over as
\nPresident from long-standing leader Soeharto.<\/p>\n
Harmon said he hoped Washington and Jakarta would soon be able
\nto hammer out a final agreement, but he declined to say when this
\nwould take place. \"I think we're close,\" he said.<\/p>\n
Asia has long been an important market for the Exim bank, but
\nthe region's financial crisis has slashed the level of U.S. and
\nEuropean exports to Asia. Harmon said the level of business done
\nin Asia by the Exim banks from the so-called G-7 industrialized
\nnations has dropped about 50 percent since last year.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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