RI asks for pledged aid

RI asks for pledged aid

SEOUL (Dow Jones): The Indonesia government has recently
called on six South Korean banks to provide, in stages, a total
of $116 million in standby credit agreed upon between 1995 and
1997, local bank sources said yesterday.

The local banks, however, facing their own liquidity troubles,
have been reluctant to extend aid.

The six Korean banks include state-run Korea Development Bank,
Korea Exchange Bank, Shinhan Bank, The Industrial Bank of Korea,
Hanil bank and the Commercial Bank of Korea, according to the
sources.

The $116 million is part of $4 billion backup credit agreement
the Indonesian government agreed to with 40 international banks
of the U.S., Europe and Asia between 1990-1997, according to the
sources.

"The Indonesian government is asking for the money, but Korean
banks are asking for more time because they are also short of
dollars," a source at a local bank said. "In the long run,
however, local banks will have to supply the funds according to
the agreements."