News Brief: IMF Executive Board Completes First Review of Indonesia’s Economic Program

May 4, 1998

IMF Executive Board Completes First Review of Indonesia’s Economic Program

Stanley Fischer, the Acting Managing Director of the International Monetary Fund (IMF), said: "I am pleased to announce the IMF’s Executive Board today approved the completion of the first review of Indonesia’s stand-by credit1 with the IMF.

"In approving the release of the next disbursement of SDR 733.8 million (about US$989.4 million), Executive Directors noted that the revised program benefited from a number of important prior actions by the authorities, including a strengthened monetary framework. Directors stressed the importance of sustained implementation of the program for restoring confidence in the Indonesian economy. They noted the close collaboration between the IMF and the World Bank in the design and implementation of the program in Indonesia, and in the associated financing.

"In the coming weeks, the Managements of the World Bank and the Asian Development Bank are expected to bring proposals for loans to Indonesia to their respective Boards. The Governments of Japan, Australia and Malaysia have agreed to provide bilateral financing to support the Indonesian economy. In addition, a number of countries have announced that they will be providing support for trade financing and export insurance.

"In order to permit close monitoring of the program, it is proposed to conduct monthly reviews in May and June, so that the disbursement of about SDR 2.2 billion (about US$2.97 billion) that is scheduled to be available after March 15 will be split into three equal monthly instalments, including today’s disbursement."

1The 36 - month stand - by credit equivalent to SDR 7.3 billion (about US$9.84 billion) was approved on November 5, 1997 (see Press Release No. 97/50). Today 's approval will bring total disbursements under the credit to SDR 2.935 billion (about US$3.96 billion).


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