Rescheduling of RI debt welcomed

Rescheduling of RI debt welcomed

NEW YORK (AFP): Moody's Investors Service on Tuesday said the
Paris Club donor countries' rescheduling of the debt of Indonesia
"was in accordance with" its expectations.

Following this April 13 rescheduling agreement, the U.S.
ratings agency said the foreign currency country ceiling "would
remain at B3, with a positive outlook."

Moody's had issued a positive outlook on the country's ceiling
last December "based on the expectation that relations with
foreign official creditors would improve under the new
government," a statement from the agency said.

The ratings agency said "the conclusion of the Paris Club
negotiations is evidence that such an improvement is underway."

But the statement added that the "delay in disbursement of IMF
funds until June is of some concern."

The Paris Club donor countries accorded Indonesia a
rescheduling of its $5.8 billion debt until the end of March
2002.

The International Monetary Fund is in the process of
coordinating some $46 billion in international loans to Indonesia
following the 1997 Asian financial crisis.