News Brief: IMF Completes Review and Approves US$940 Million Credit Tranche for Indonesia
September 25, 1998
IMF Completes Review and Approves US$940 Million Credit Tranche for Indonesia
Michel Camdessus, Managing Director of the International Monetary Fund, said: " I am pleased to announce that in support of the Indonesian government’s economic program, the IMF’s Executive Board today approved the completion of the first review under the extended arrangement 1 (EFF) and the release of the next SDR 684.3 million (about US$940 million) credit tranche for Indonesia. I commend the authorities for good policy implementation under extremely difficult circumstances and am encouraged by the continued firm implementation of monetary policy which has been reflected in the recent stability of the rupiah. I also welcome the intensified efforts made by the government to hold down the prices of essential commodities, and the expansion of the program to provide rice at greatly subsidized prices to poor families."
Camdessus noted the progress that had been made with bank restructuring and strengthening the framework for corporate debt restructuring, and emphasized the importance of making rapid progress in both these areas. He also welcomed the decision this week by the official creditors to reschedule or refinance principal payments (or provide equivalent new money) on Indonesia’s bilateral external debt through the end of the 1999/2000 fiscal year.
1See News Brief no 98/31 of August 25, 1998. The EFF replaced the three year stand-by credit approved by the IMF on November 5, 1997 and covers its remaining 25- month period through November 2000.