WB approves the release of US$400m loan to Indonesia<\/p>\n
JAKARTA (JP): The World Bank approved the release of a US$400
\nmillion loan to Indonesia on Tuesday, completing the disbursement
\nof the $1 billion loan package signed in July last year.<\/p>\n
The World Bank said the loan approval reflected the continued
\nprogress of reforms in Indonesia's structural and financial
\nsectors.<\/p>\n
The World Bank is satisfied with recent policy developments in
\nIndonesia, citing the recently announced changes in regulations
\ngoverning forestry management and palm oil export taxes as
\nexamples.<\/p>\n
"Despite enormously difficult circumstances, the government is
\nmaking progress in its reform efforts," the World Bank's country
\ndirector for Indonesia, Dennis de Tray, said in a statement.<\/p>\n
He also noted that portfolio reviews for all banks under the
\nsupervision of the Indonesian Bank Restructuring Agency had been
\ncompleted, and that the government was moving to accelerate the
\nrestructuring of banks in order to reestablish effective banking
\nservices.<\/p>\n
"A framework for debt and corporate restructuring has been
\nestablished and many firms have begun to seek restructuring
\nassistance under the Jakarta Initiative," De Tray added.<\/p>\n
However, De Tray reminded Indonesia that it still faced many
\nchallenges in its efforts to restore its economy.<\/p>\n
"The World Bank remains committed to helping Indonesia on this
\njourney in any and every way we can," De Tray said.<\/p>\n
The $1 billion loan package was signed on July 2, 1998, under
\nthe name of the Policy Reform Support Loan.<\/p>\n
The loan is intended to provide the Indonesian government
\nbudgetary support for reforms in the structural and financial
\nsectors, and to meet urgent social needs.<\/p>\n
The initial $600 million was disbursed immediately after the
\nloan was signed last year. (02)<\/p>",
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