Germany gives RI US$206m

Germany gives RI US$206m

JAKARTA (JP): German Finance Minister Theo Waigel signed a
memorandum of understanding (MOU) yesterday to provide Indonesia
with Dm375 million (US$206 million) in financial assistance to
help fight the economic crisis.

The aid package comprises two credit programs worth Dm300
million and development assistance totaling Dm75 million.

The credit programs include Dm250 million in export credit
guarantees for small and medium enterprises having trouble
finding local finance for investment projects or for capital
goods and imports of raw materials. The export credits will be
channeled through Bank Indonesia, the central bank.

A further Dm50 million in credits will be made available for
small and medium enterprises through the banking system and will
not be tied to any particular projects.

"With this facility provided through the MOU, we provide
assistance to them to enable small and medium enterprises to
carry out their exports and also to help them take some
restructuring measures," Waigel said after signing the MOU during
a one-day visit with his counterpart Mar'ie Muhammad.

"I think these measures, together with the IMF reform program,
will set an important signal which will create confidence in the
market and the public in general," he added. (rid)