WB sees no role in RI debt talks

WB sees no role in RI debt talks

SINGAPORE (Reuters): The World Bank does not plan to get involved in recently announced talks between Indonesia's corporate debtors and international creditor banks, World Bank President James Wolfensohn said yesterday.

"I think this is something that should be done by the Indonesian corporate sector along with their bankers, just as it would happen in the U.S. if a company gets into trouble," Wolfensohn told Reuters Financial Television.

He said the international business community was learning the importance of high standards of disclosure as a result of the Asian financial crisis.

"Personally, I think it's important the private sector understand that private sector risks are private sector risks." he said.

"And maybe that will teach people next time that you cannot rely on being bailed out just because you're dealing in another country."

Indonesia, which has an estimated $66 billion foreign corporate debt, on Tuesday proposed a voluntary and temporary freeze of debt servicing until borrowers and lenders could work out an arrangement to resume payments.

A steering committee of international bankers from Indonesia's main creditor countries held talks with major Indonesian debtors in Singapore on Tuesday to work towards forming a framework to manage the debt.

Wolfensohn arrived in Singapore from Thailand on Sunday as part of a week-long tour of Southeast Asia, during which he will meet with political leaders and labor and industry organizations.

He is due to fly to Kuala Lumpur on Monday.