IMF discusses RI request

IMF discusses RI request

WASHINGTON (Reuters): The International Monetary Fund (IMF) is discussing an Indonesian request for extra cash, but has not decided how to respond, a spokesman said on Tuesday.

"The matter is obviously under discussion, but no decision has been taken," the spokesman said.

Indonesia, the second major victim of an economic crisis which started in Thailand and has since spread across the developing world, has already received US$8.8 billion of an $11.2 billion loan from the IMF.

But Coordinating Minister for Economy and Finance Ginandjar Kartasasmita told Reuters last week that his country would be asking the IMF for an additional $1 billion in order to unlock funds promised under the Japanese government's Miyazawa Plan.

"We need the extra funds from the IMF to be able to get more money from Japan," he said. "Japan, with the Miyazawa Plan, is insisting that it should be co-financed with the IMF."

Japan's $30 billion plan aims to help Asian countries caught in the economic maelstrom, which started when crashing currencies exposed fragile banking systems and inadequate investment rules.

The IMF spokesman said he expected the fund's executive board to meet in March to discuss new payments to Indonesia, whose IMF money forms part of a $43 billion international rescue package.

The program got off to a shaky start, amid serious doubts about Indonesia's commitment to economic reforms. But Ginandjar, who held talks with IMF and World Bank officials in Washington this week, said the IMF had been helpful and the worst was over for the Indonesian economy.