Dutch bank's loans for RI

Dutch bank's loans for RI

UTRECHT, The Netherlands (Dow Jones): The Dutch Development Finance Agency (FMO) Friday signed an agreement with Rabobank International and the International Finance Corporation to set up a US$120 million credit facility in Indonesia.

The three parties involved will take an equal share in bearing the risk for the facility, under which Indonesian companies can get short-term loans from Rabobank International Singapore through a local intermediary, Rabobank Duta Indonesia.

Rabobank, FMO and the IFC will select the companies.

The three organizations said the financial crisis in Indonesia has made it hard for export companies to get working capital for pre-export and import financing and said this had led them to set up the facility.

FMO specializes in financing investments in the private sector in emerging markets. Indonesia is one of the largest countries in its portfolio. It has 109.7 million euros outstanding in Indonesia.