Neiss back in town to discuss new aid

JAKARTA (JP): The International Monetary Fund's director for the Asia Pacific, Hubert Neiss, is due to arrive here today for a two-week visit.

IMF advisor to Indonesia Prabhan R. Narvekar said here Monday Neiss would discuss the US$6 billion in loans approved last week, which is in addition to the $41.2 billion international bail-out package already in place.

He will also review use of IMF funds already disbursed to the country, Narvekar said.

The IMF agreed to resume loan payments to Indonesia last week, after suspending payments following the May riots which led to the resignation of former president Soeharto.

At a recent meeting in Washington D.C., the IMF board of directors agreed to release immediately the next tranche of aid to Indonesia.

It said it would disburse $1 billion worth of a "special drawing right" which is equivalent to $1.35 billion. It would also disperse additional loans until March 1999.

Coordinating Minister of Economy, Finance and Industry Ginandjar Kartasasmita said Monday the loan would be used to strengthen the country's balance of payment and cover state budget deficits.

Ginandjar said Indonesia would also receive $1 billion in additional loans each from the World Bank and the Asian Development, as well as bilateral aid from other countries, Antara reported.

Japan will provide $1 billion in fresh loans, Australia $300 million and China $300 million, he said.

Along with the $1.25 billion worth of rescheduling of the country's sovereign debt, it will amount to $6.2 billion in total aid, he said. (das)