Holland provides trade financing guarantees to RI
Holland provides trade financing guarantees to RI
Minister of Economic Affairs Wijers and Minister of Finance
Zalm have, in consultation with Minister of Foreign Affairs Van
Mierlo, have decided to provide a credit-insurance facilities for
short-term export transactions with Indonesia to an amount of NGL
250 million for this current year.
Calculating an average credit term of about three months, a
total export volume of NGL 1 billion (US$500 million) can be
realized on a yearly basis.
The Netherlands Government expects that the facility will have
a positive effect on trade between the Netherlands and Indonesia.
The facility will enter into force after the latest agreement
between the IMF and Indonesia has been formalized and as soon as
the IMF has announced to resume payment to Indonesia and will be
administered by the Netherlands Credit Insurance Company (NCM).
Apart from the new facility, it has also been decided to
intensify The Netherlands Management Cooperation Program (NMCP)
and the Scholarship and Practical Training Program. The two
programs are executed by VNO/NCM, the Netherlands employers
organization.
The three measures have been taken in consultation with the
Netherlands business community at a round-table conference
convened by Minister Wijers. The feasibility of other suggestions
from the Netherlands' business community is still subject to
further investigation.
Due to the economic crisis, the Netherlands trade with
Indonesia has practically come to a standstill, entailing
negative consequences for the Indonesian people and the
Netherlands business community. The new trade financing facility
allows for a resumption of imports into Indonesia, necessary for
local production and export from Indonesia.
It will hopefully bring back confidence in the Indonesian
economy, resulting in a stronger rupiah. It is also foreseen that
through the Netherlands trade financing guarantees for Indonesia,
the import of (raw materials for) essential goods and medicines
will be facilitated.