IMF to ask Japan for extra $1b

IMF to ask Japan for extra $1b

TOKYO (Dow Jones): The International Monetary Fund will ask
Japan to extend an additional US$1 billion in emergency lending
to Indonesia to help the government continue paying off its
external debt, the Nihon Keizai Shimbun's Sunday edition quotes
IMF sources as saying.

The new lending would be part of a $6 billion loan package the
IMF plans to put together by mid-July.

The IMF will contribute $2 billion to the package, with $1
billion each being sought from Japan, the World Bank and the
Asian Development Bank. The remaining $1 billion would come from
such countries as the United States, Germany and Brunei, the
newspaper reports.

The IMF has already broached the matter with Japan through
unofficial channels, and seems to have received a positive
response.

Japan is considering making the loan via government-affiliated
institutions such as the Export-Import Bank of Japan and the
Overseas Economic Cooperation Fund, the sources said.