Japan to reschedule RI debts

Japan to reschedule RI debts

TOKYO (AFP): Japan is expected to agree to reschedule one billion dollars of loans extended to Indonesia, the Nihon Keizai Shimbun newspaper said Friday.

The Japanese government will make a final decision following further discussions at the foreign, trade and finance ministries, the business daily said, quoting government sources.

The move comes after Indonesia's other creditor countries suspended debt repayments in their effort to help Jakarta cover fiscal shortfalls in recent years.

The amount of rescheduling, which will include trade insurance and loans from the Japan Bank for International Cooperation, will total one billion dollars, the newspaper said.

Japan, which has so far provided the country fresh loans instead of rescheduling, is now considering joining the other creditors in allowing the suspension of debt repayment, the report said.