Malaysia promises bridging loan for RI

Malaysia promises bridging loan for RI

KUALA LUMPUR (AP): Malaysia will provide a bridging loan to
help Indonesia while it waits for the rest of a US$43 billion
rescue package organized by the International Monetary Fund,
Prime Minister Mahathir Mohamad said yesterday.

The amount was not mentioned, but Mahathir said Malaysia could
provide only part of the help needed. He said Japan also has
given Indonesia financial aid.

Mahathir said the loan for Indonesia would be in addition to
US$1 billion that Malaysia provided for its neighbor last year
when the economic crisis began.

"Indonesia needs some help because the IMF is slow in
channeling the balance of the $43 billion rescue package to
Indonesia," he added.

The loan is to be repaid as soon as Indonesia receives the IMF
aid, Mahathir said after meeting with Ginandjar Kartasasmita,
Indonesia's coordinating minister for economy, finance and
industry.

Ginandjar told reporters that President Soeharto had sent him
to inform Mahathir of developments and reforms in Indonesia.

He also thanked the Malaysian government for its help in
easing Indonesia's economic crisis.

In Mahathir's talks with Ginandjar, Southeast Asia's problem
with haze from forest fires also was discussed, the national news
agency Bernama said.

"Discussions covered contingency plans to battle the problem,
especially during the forthcoming Commonwealth Games here from
Sept. 11-21," Mahathir told reporters.

He said the Indonesian minister in charge of the environment
would come to Malaysia to discuss the problem further with his
Malaysian counterpart.

The haze and a water shortage in the Klang Valley are two
problems facing organizers of the Commonwealth Games.