ADB lends 292 million dollars to Indonesia

ADB lends 292 million dollars to Indonesia

Agence France-Presse, Manila

The Asian Development Bank (ADB) has approved two loans
totaling US$292.2 million to Indonesia, the bank announced
Wednesday.

The first loan, amounting to $250 million, will go to support
a program of reforming financial governance and social security
in Indonesia, the ADB said in a statement from its headquarters
in the Philippine capital.

In addition, the ADB will extend a $1 million technical
assistance grant for a feasibility study on the proposed reforms.

The program will address weaknesses exposed by the 1997 Asian
financial crisis: excessive dependence on bank financing and
imprudent lending, a small and underdeveloped non-bank financial
sector, lack of accountability and independence, inadequate
regulation and supervision, and weak corporate governance.

The second loan, amounting to $42.22 million, will go to help
develop regional governments in Indonesia in support of the
country's decentralization process, the ADB said.

This will include helping regional governments deliver public
services efficiently, maintain essential public facilities,
promote equitable economic development and carry out poverty
reduction programs.

In support of this loan, the ADB will extend a $1.2-million
technical assistance grant to monitor the program.