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.