ADB meets on RI debt

ADB meets on RI debt

MANILA (Dow Jones): The Asian Development Bank (ADB) said its
board is scheduled to meet today to approve a US$1.5 billion
program loan to strengthen and reform Indonesia's financial
sector.

The political turmoil in Indonesia caused the loan to be
delayed over the past month, but the International Monetary
Fund's agreement this week to release the next tranche of its
rescue package for Indonesia in early July has put the ADB loan
back on track.

An ADB spokesman told Dow Jones Tuesday that the board is
expected to approve the loan, which will be dispersed in three
tranches.

"We're not anticipating any problems," the spokesman said.

Under the disbursement schedule, the ADB expects to pay $550
million shortly after the loan is approved, followed by another
tranche of $500 million at the end of the year.
The balance will be dispersed in 1999.