IMF seen deciding next aid disbursement soon
IMF seen deciding next aid disbursement soon
JAKARTA (JP): The IMF executive board is expected to hold a
meeting on Dec. 12 to review Indonesia's economic reform programs
and to decide on the date of the next disbursement of its bailout
money for the country, according to Coordinating Minister for
Economy, Finance and Industry Ginandjar Kartasasmita.
Ginandjar said on Monday that the current political situation
would not cause the agency to delay the aid disbursement.
"There hasn't been any delay, since the beginning the schedule
has been like that," he told reporters after a meeting with
several economic ministers.
He explained that the disbursement decision was extended to
Dec. 12 because the disbursement scheduled for the end of October
was prolonged to November.
"So it's only a technical problem, nothing else," he added.
IMF Asia-Pacific director Hubert Neiss led the monthly review
of Indonesia's economic reform programs in early November, during
which the agency was encouraged by the progress the government
had made in overcoming the economic crisis.
This review is expected to be reevaluated by the agency's
executive board in December, after which another disbursement of
about US$1 billion should be released.
The IMF pledged some $11.3 billion in loans of the more than
$42 billion bailout package promised together with other
multilateral and bilateral lenders to finance the country's
economic reform programs designed to fix its worst economic
crisis in three decades.
The agency had so far released some $8 billion of the first
line of defense loan it promised.
Subsequent IMF reviews will no longer be held on a monthly
basis but will take place every two months, reflecting
Indonesia's improving economy.
The IMF arranged the bailout fund in October last year after
the country's currency and financial sector collapsed in the wake
of the Asian financial crisis, which began in Thailand in July.
The economic conditions worsened in May this year when
political and economic chaos ended the 32-year rule of former
president Soeharto, prompting the IMF to temporarily freeze the
loan payments.
The disbursements resumed in July, and donors agreed to
continue their support to the new government of President B.J.
Habibie.
Political unrest has continued throughout the country in the
last month, the deadliest clashes being between students and
security officials on Nov. 13 followed by racial rioting in
Jakarta, but the economy appears to have ridden out the storm.
(rei)
JAKARTA (JP): The IMF executive board is expected to hold a
meeting on Dec. 12 to review Indonesia's economic reform programs
and to decide on the date of the next disbursement of its bailout
money for the country, according to Coordinating Minister for
Economy, Finance and Industry Ginandjar Kartasasmita.
Ginandjar said on Monday that the current political situation
would not cause the agency to delay the aid disbursement.
"There hasn't been any delay, since the beginning the schedule
has been like that," he told reporters after a meeting with
several economic ministers.
He explained that the disbursement decision was extended to
Dec. 12 because the disbursement scheduled for the end of October
was prolonged to November.
"So it's only a technical problem, nothing else," he added.
IMF Asia-Pacific director Hubert Neiss led the monthly review
of Indonesia's economic reform programs in early November, during
which the agency was encouraged by the progress the government
had made in overcoming the economic crisis.
This review is expected to be reevaluated by the agency's
executive board in December, after which another disbursement of
about US$1 billion should be released.
The IMF pledged some $11.3 billion in loans of the more than
$42 billion bailout package promised together with other
multilateral and bilateral lenders to finance the country's
economic reform programs designed to fix its worst economic
crisis in three decades.
The agency had so far released some $8 billion of the first
line of defense loan it promised.
Subsequent IMF reviews will no longer be held on a monthly
basis but will take place every two months, reflecting
Indonesia's improving economy.
The IMF arranged the bailout fund in October last year after
the country's currency and financial sector collapsed in the wake
of the Asian financial crisis, which began in Thailand in July.
The economic conditions worsened in May this year when
political and economic chaos ended the 32-year rule of former
president Soeharto, prompting the IMF to temporarily freeze the
loan payments.
The disbursements resumed in July, and donors agreed to
continue their support to the new government of President B.J.
Habibie.
Political unrest has continued throughout the country in the
last month, the deadliest clashes being between students and
security officials on Nov. 13 followed by racial rioting in
Jakarta, but the economy appears to have ridden out the storm.
(rei)