IMF to send mission to RI to discuss LoI
IMF to send mission to RI to discuss LoI
WASHINGTON (Reuters): The International Monetary Fund said on
Thursday it would send a mission to Indonesia next week to
discuss a letter of intent with authorities and set fresh
economic targets.
"The dialogue with the Indonesian authorities in specific
reform areas of importance to the economic program will be
carried forward next week when a staff team is expected to visit
Jakarta," IMF spokesman Vasuki Shastry said in a brief statement.
The IMF in January agreed to lend US$5 billion over three
years to help mend Indonesia's broken economy. The next
disbursement -- they are usually around $400 million -- is
expected before the end of December.
Earlier on Thursday, Indonesia's chief economics minister
Rizal Ramli denied a report that vital loans from the IMF were
under threat. "There is no threat...we are confident (of fresh
loans) because we have been working very hard and every day win
one or two battles," he told Reuters.
He was responding to a report in this week's Far Eastern
Economic Review which refers to a Nov. 8 letter from the IMF
suggesting the fund's board might block fresh loans if Indonesia
does not speed up economic reforms.
Sources inside the IMF said that the news report went too far
and that the IMF had made no such threat, adding that the letter
was not unusual. The sources said the letter detailed differences
of opinion between the IMF and Indonesia which had already been
publicly stated and that the lending program was not at risk as
the news report suggested.
They added that the IMF has in the past sent letters to
Jakarta threatening to cut off assistance, most notably over
issues related to the Bank Bali scandal, but that this latest
letter made no such allusions or threats.
It has been a constant battle for Indonesia to meet key
economic targets outlined in a series of letters that are tied to
regular IMF loan disbursements. In its biggest breach of the
agreement, Indonesia in October delayed the stake sales of two
leading commercial banks, which would have helped boost ailing
market sentiment and government coffers.
Indonesia has been repeatedly criticized this year by the IMF
and World Bank for dithering on key reforms and for the lack of
transparency in corporate debt restructuring deals.
In April the IMF delayed a $400 million disbursement because
Indonesia failed to implement promised measures to tackle its
$120 billion corporate debt burden.
But Ramli said Indonesia had recently made good progress under
difficult circumstances, many of which were inherited from the
autocratic rule of former President Suharto.