RI gets $500m from ADB

RI gets $500m from ADB

MANILA (AP): The Asian Development Bank approved Tuesday the release of an additional US$500 million to help Indonesia implement financial reforms and recover from the region's currency crisis.

The money is part of a $1.4 billion financial restructuring loan approved by the Manila-based multilateral bank last June. An initial $500 million was released shortly after the loan's approval.

Indonesia is grappling with its worst economic crisis in 30 years and is bracing itself for renewed political unrest ahead of general elections scheduled for early June.

The ADB pointed to signs of economic recovery and said the Indonesian government has been able to complete a "large number" of reforms in areas such as supervision of financial institutions and disclosure of financial information.

"The Indonesian economy has shown signs of stabilization with falling interest rates, inflation and the strengthening of the rupiah," the ADB said.

It also praised Indonesia's recently announced draft budget for fiscal 1999, saying it "reflects the government's continuing efforts to pursue sound macroeconomic policies that would help improve market sentiment and hasten economic recovery."