ID :
57882
Tue, 04/28/2009 - 08:21
Auther :
Shortlink :
https://www.oananews.org//node/57882
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INDONESIA URGES IMF TO ISSUE FLEXIBLE FINANCING POLICY
Jakarta, April 27 (ANTARA) - Indonesia has urged the International Monetary Fund (IMF) to issue a new and more flexible financing instrument so that it could respond to the need of member countries more effectively.
The country's state minister for development planning, Paskah Suzetta, said here on Monday the Indonesian government conveyed the request at the Joint Ministerial Development Committee Meeting on April 26 on the sidelines of Spring Meeting between the World Bank and the IMF in Washington DC on April 25-26.
Paskah who was an alternate World Bank governor representing Southeast Asian Voting Group said the new financing instrument was needed so that the IMF financing would not invite controversy again and dispute among member countries it financed.
"The more flexible instrument will help wipe out the IMF's negative stigma following its handling of the crisis in 1997-1998," he said.
He said countries in the world needed quite large financing to overcome the current global economic crisis and prevent its recurrance later.
One of the reasons for the need was stabilization of monetary aspects in countries covered by the IMF, he said.
He said Indonesia once had a bad experience with loans from the IMF to overcome the crisis in the country in 1997-1998. He said the IMF was committed to extend US$43 billion out of its total global committment of US$86 billion.
He said the commitment was given upon conditions such as cutting government spending for social subsidies and economic deregulation and privatization of state-owned companies.
Based on the G-20 agreement in London in March this year, the IMF had prepared financing assistance to overcome crisis to countries needed it up to US$750 billion which was up from earlier level of US$500 billion.
The IMF increased the amount because many countries needed it to deal with the current global crisis.
Several countries that have submitted proposals for the loan are Iceland, Hungary, Latvia, Serbia, Ukraine, Belarus and Pakistan totalling US$48 billion. The IMF has also approved loans for Turkey.
The country's state minister for development planning, Paskah Suzetta, said here on Monday the Indonesian government conveyed the request at the Joint Ministerial Development Committee Meeting on April 26 on the sidelines of Spring Meeting between the World Bank and the IMF in Washington DC on April 25-26.
Paskah who was an alternate World Bank governor representing Southeast Asian Voting Group said the new financing instrument was needed so that the IMF financing would not invite controversy again and dispute among member countries it financed.
"The more flexible instrument will help wipe out the IMF's negative stigma following its handling of the crisis in 1997-1998," he said.
He said countries in the world needed quite large financing to overcome the current global economic crisis and prevent its recurrance later.
One of the reasons for the need was stabilization of monetary aspects in countries covered by the IMF, he said.
He said Indonesia once had a bad experience with loans from the IMF to overcome the crisis in the country in 1997-1998. He said the IMF was committed to extend US$43 billion out of its total global committment of US$86 billion.
He said the commitment was given upon conditions such as cutting government spending for social subsidies and economic deregulation and privatization of state-owned companies.
Based on the G-20 agreement in London in March this year, the IMF had prepared financing assistance to overcome crisis to countries needed it up to US$750 billion which was up from earlier level of US$500 billion.
The IMF increased the amount because many countries needed it to deal with the current global crisis.
Several countries that have submitted proposals for the loan are Iceland, Hungary, Latvia, Serbia, Ukraine, Belarus and Pakistan totalling US$48 billion. The IMF has also approved loans for Turkey.
