Insurance for RI gets green light

Insurance for RI gets green light

WASHINGTON (Dow Jones): U.S. Export-Import Bank Chairman James
Harmon said Thursday the bank was near-ready to go ahead with
providing US$1 billion in short-term export credit insurance for
Indonesia.

"I hope to sign as early as (Friday) an agreement for short-
term credit for $1 billion for Indonesia,' Harmon said, speaking
to the Ex-Im Bank's annual conference. Indonesian Finance
Minister Fuad Bawazier was scheduled to speak there yesterday.

Ex-Im has completed arrangements on its side but is working
out some final details with Fuad, a bank spokesman said.

The $1 billion commitment was first made when Harmon traveled
in the region in January, the spokesman said.

Besides needing a sovereign guarantee to extend the insurance,
Harmon had also stressed the importance of Indonesia sticking to
its International Monetary Fund reform program.

On Monday, the IMF deemed Indonesia sufficiently back on track
to approve a $1 billion disbursement, noting that several
countries planned to provide Indonesia with trade financing
support and export insurance.

Ex-Im has boosted its Asian programs since U.S. banks have
been loath to guarantee the region's letters of credit following
the financial crises there.