WB signs Indonesian loan

WB signs Indonesian loan

WASHINGTON (Dow Jones): The World Bank and Indonesia signed here Friday an agreement on a US$225 million poverty-alleviation loan, the Indonesian embassy said.

The loan was approved by the World Bank board on June 2, after a delay due to the political instability that led to the resignation of long-running President Soeharto last month.

The financing will support a program that aims at eradicating poverty in 9,000 rural villages, the embassy said in a press release.

A $1 billion policy reform support loan was also put on hold, but is now scheduled to be considered by the bank board soon, Indonesia Country Director Dennis de Tray said Monday in Jakarta.

A bank spokeswoman in Washington said the loan is tentatively scheduled for consideration on July 2.

On Thursday, the government and the International Monetary Fund also reached an agreement on a revised economic program, which will let a stalled $1 billion loan tranche be released; that tranche is expected next month.