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.