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.