IDB guarantees RI's LCs

IDB guarantees RI's LCs

JAKARTA (JP): The Islamic Development Bank (IDB) has agreed to
extend a US$240 million guarantee on letters of credit to the
Indonesian Exporters Association.

The bank was quoted by Antara as saying yesterday that the
facility would allow association members to export commodities
such as coffee, tea, textiles and plywood to Jordan, Saudi Arabia
and Egypt.

Indonesia's trade has been hard hit in the current economic
crisis by the refusal of a number of foreign banks to honor
letters of credit from the country following the plunge of the
rupiah by more than 80 percent in value against the U.S. dollar
since July last year.

The Jeddah-based Islamic Development Bank promotes trade among
Islamic member states.