ID :
48986
Wed, 03/04/2009 - 23:44
Auther :
Shortlink :
https://www.oananews.org//node/48986
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FOUR FOREIGN PARTIES SUPPORT US$5.5 B STAND-BY LOAN FOR RI
Jakarta, March 4 (ANTARA) - Australia, Japan, the World Bank and the Asian Development Bank have confirmed their intention to provide Indonesia with a stand-by loan facility worth US$5.5 billion for a period of two years, a minister said.
Acting Coordinating Mminister for Economic Affairs concurrently Finance Minister Sri Mulyani Indrawati said the four foreign parties had accepted Indonesia's idea to create a Public Expenditure Support Facility (PESF).
"The World Bank's board of directors on March 3, 2009 agreed to give a loan of US$2 billion in the form of a deferred drawdown option (DDO)," Mlyani said at a press conference here Wednesday.
Present at the press conference were also Ausralian Ambassador to Indonesia Bill Farmer, Japanese Ambassador Kojiro Shiojiri, World Bank Acting Country Director Chris Hoban and ADB Country Director James Nugent.
Mulyani said Japan, Australia and ADB welcomed the World Bank's decision and confirmed their support to it.
The PESF is one of the ways by which the Indonesian government plans to deal with the impact of the current global economic crisis. The other ways include a fiscal stimulus package worth US$6.1 billion which was approved by the parliament.
"The PESF is a precautionary measure, planned for maintaining international and domestic market confidence and boosting the state's capacity to seek funds needed to finance the development effort," she said.
She said the government could access the stand-by loan and bonds security provided in the facility to finance infrastructure, social and other important development programs when the market was unable to provide the funds needed for those programs at a reasonable cost.
The facility would make it unnecessary for the government to cut spending and public services badly needed for dealing with the impact of the global economic crisis, she said.
Japan would immediately contribute up to US$1.5 billion to the PESF, Australia US$1.0 billion and the ADB was considering to contribute around US$1.0 billion, she said.
Acting Coordinating Mminister for Economic Affairs concurrently Finance Minister Sri Mulyani Indrawati said the four foreign parties had accepted Indonesia's idea to create a Public Expenditure Support Facility (PESF).
"The World Bank's board of directors on March 3, 2009 agreed to give a loan of US$2 billion in the form of a deferred drawdown option (DDO)," Mlyani said at a press conference here Wednesday.
Present at the press conference were also Ausralian Ambassador to Indonesia Bill Farmer, Japanese Ambassador Kojiro Shiojiri, World Bank Acting Country Director Chris Hoban and ADB Country Director James Nugent.
Mulyani said Japan, Australia and ADB welcomed the World Bank's decision and confirmed their support to it.
The PESF is one of the ways by which the Indonesian government plans to deal with the impact of the current global economic crisis. The other ways include a fiscal stimulus package worth US$6.1 billion which was approved by the parliament.
"The PESF is a precautionary measure, planned for maintaining international and domestic market confidence and boosting the state's capacity to seek funds needed to finance the development effort," she said.
She said the government could access the stand-by loan and bonds security provided in the facility to finance infrastructure, social and other important development programs when the market was unable to provide the funds needed for those programs at a reasonable cost.
The facility would make it unnecessary for the government to cut spending and public services badly needed for dealing with the impact of the global economic crisis, she said.
Japan would immediately contribute up to US$1.5 billion to the PESF, Australia US$1.0 billion and the ADB was considering to contribute around US$1.0 billion, she said.
