Press Release No. 06/215

Press Release: IMF Welcomes Indonesia's Decision to Repay Early its Outstanding Obligations to the IMF

October 6, 2006

On October 5, 2006, Indonesia announced that it will repay early its remaining obligations to the International Monetary Fund amounting to some SDR 2.2 billion (about $3.2 billion). The payment is expected to be made next week.

Mr. John Lipsky, the First Deputy Managing Director of the IMF welcomed the early repayment and commended the Indonesian authorities for their economic achievements over the last few years. He said, "Indonesia's ability to repay the Fund early reflects the strength of Indonesia's economic recovery and its strong balance of payments position. We look forward to a continued close relationship and broad dialogue with the Indonesian authorities on economic developments and policy issues."

The outstanding obligations were contracted under the Extended Fund Facility (EFF) arrangements during 1998-2003 (see News Briefs No. 98/31, No 99/13, and No. 02/7, and Press Release No. 00/4). Total drawings under the EFFs, the second of which expired at end-2003, amounted to SDR 7.4 billion (about US$11.1 billion). Under the original repayment expectation schedule, the final repayment of outstanding obligations would have taken place in December 2010.