IFC approves $675.3m in aid for RI

JAKARTA (JP): The International Finance Corporation (IFC), an affiliate of the World Bank, approved a total package of US$675.3 million for Indonesian projects in the 1995/96 fiscal year ending June 30, 1996, the corporation announced here yesterday.

For the financing, the IFC provided $182.4 million from its own accounts, while the other $492.9 million was syndicated with foreign financial institutions, Antonio H. David, the IFC's regional representative, said in a statement sent to The Jakarta Post yesterday.

The financing approvals included a $350 million long term loan for a telecommunications project in Sumatra by PT Pramindo Sumatra Telecoms, a joint venture of PT Astra International and France Telecom.

The IFC also made a substantial commitment to agribusiness with new investments in the palm oil and poultry industries.

"The IFC is also working with second-tier private companies which need assistance and capital to succeed in an increasingly competitive market, to contribute to a more diverse and resilient private sector," said David.

He said that the IFC's Annual Report for the 1995/1996 fiscal year, to be released officially at the forthcoming World Bank-IMF-IFC Annual Meeting in Washington on Oct. 2-3, will also show that the corporation approved a total of $3.2 billion in financing for 264 projects in 68 developing countries in 1995/1996, up from $2.9 billion in the previous fiscal year.

In Asia, the IFC approved the financing of $2.8 billion for 53 projects in 1995/1996.

Investments in agribusiness and food processing increased considerably in 1995/1996 with the IFC's approval of over $379 million for its own account for 51 projects worldwide.

The report also noted that loan syndications rose by 88 percent to $4.8 billion last fiscal year from $2.6 billion in 1994/1995. (jsk)