U.S. Exim Bank doing no new business here

U.S. Exim Bank doing no new business here

HONG KONG (Dow Jones): One of the few U.S. government agencies
that could help rescue beleaguered Indonesian companies from the
ravages of Asia's currency crisis says it hasn't been able to
provide any financial assistance.

In May, the Export-Import Bank of the U.S. announced a US$1
billion package to help support U.S. exports to Indonesia. But
since then, the bank hasn't done any new business under the
package, said the bank's chairman, James Harmon, in an interview
with Dow Jones. A spokesman for the bank said that he believed
the bank had done no business at all in Indonesia during the
financial year that began on Oct. 1, 1997.

Assistance from the Exim bank could provide a crucial shot in
the arm for many Indonesian corporations which are in dire
straits because they can't afford to buy U.S. or other foreign
goods following the sharp plunge in the rupiah's value. The Exim
bank provides loans, guarantees and other support to overseas
countries that want to buy U.S. exports. In the 12 months ending
Sept. 30, the Exim Bank has so far supported about $15 billion in
U.S. exports worldwide.

Harmon said that after an initial agreement was reached in May
between Washington and Jakarta, the Indonesian government was
"supposed to come back to us to finalize the agreement." Harmon
attributed the lack of progress from Jakarta to the subsequent
change in government, in which B.J. Habibie took over as
President from long-standing leader Soeharto.

Harmon said he hoped Washington and Jakarta would soon be able
to hammer out a final agreement, but he declined to say when this
would take place. "I think we're close," he said.

Asia has long been an important market for the Exim bank, but
the region's financial crisis has slashed the level of U.S. and
European exports to Asia. Harmon said the level of business done
in Asia by the Exim banks from the so-called G-7 industrialized
nations has dropped about 50 percent since last year.