IMF sees action soon on RI

IMF sees action soon on RI

WASHINGTON (AFP): The deputy head of the International Monetary Fund predicted Tuesday that an IMF package of measures for Indonesia could be in place "in a couple of weeks" and praised reforms just adopted in Thailand.

Deputy IMF managing director Stanley Fischer, speaking to reporters after a speech here, refused to confirm reports in Jakarta that a bailout package to help Indonesia overcome its currency crisis could amount to US$12 billion.

"I've got no idea where they came up with that number and we've got no sense of what's right at this time," he said.

But he added that the IMF, which currently has a mission in Jakarta, should "some time later this week get some idea of what our team thinks is needed."

"And then we're going to have to look through it very carefully in Washington," he said.

Fischer stressed that the IMF would be "mainly guided by what the Indonesian government thinks is necessary," notably in efforts to shore up the financial sector.

He foresaw that "once that package is in place -- it could be in a couple of weeks -- I think there'll be a recovery in confidence," principally because the Indonesian government has a clear idea of what it wants to do.

Fischer also described a comprehensive reform program approved Tuesday by the Thai cabinet as "excellent."

The measures cut $2.7 billion in the budget to September 1998 and impose new excise taxes and import duties to raise revenue.

In addition, the cabinet endorsed the idea of a new Financial Restructuring Agency to overhaul ailing financial institutions, a step noted by Fischer.

"I'm pretty sure that today's announcement moves us quite far down the road toward getting the right reform package for the whole financial sector," he said.

"I don't think there's a lot more on the Thai side that needs to be decided. Now we'll have to see it be implemented."