Subject: USIS/IMF: IMF APPROVES $960 MILLION CREDIT TRANCHE FOR INDONESIA*EPF104 11/09/98
TEXT: IMF APPROVES $960 MILLION CREDIT TRANCHE FOR INDONESIA
(Camdessus: Indonesian economy starting to stabilize) (360)
Washington -- In support of the Indonesian Government's economic
program, the Executive Board of the International Monetary Fund
(IMF) has approved a US $960 million credit tranche for Indonesia,
according to Michael Camdessus, managing director of the IMF.
"Due to good policy implementation, the Indonesian economy is
showing welcome signs of stabilization," Camdessus said in a
November 6 news release.
Camdessus emphasized that the Indonesian authorities need to
continue to make rapid progress in several key structural areas,
particularly in domestic banking and corporate debt restructuring.
"Together with the consolidation of the progress in stabilization,
these reforms will create the basis for a sustained recovery of
output," he said.
Following is the text of the news release:
(begin text)
News Brief No. 98/42
International Monetary Fund
FOR IMMEDIATE RELEASE
Washington, D.C. 20431 USA
November 6, 1998
IMF Completes Review
and Approves US $960 Million Credit Tranche for Indonesia
Michael 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 second review under the
Extended Fund Facility (EFF) and the release of the next SDR 684.3
million (about US $960 million) credit tranche for Indonesia. Due
to good policy implementation, the Indonesian economy is showing
welcome signs of stabilization. The rupiah has strengthened
considerably over the last month, notwithstanding some slippage in
recent days. The steep fall in output is showing signs of
bottoming out. Inflation has slowed sharply, with the price level
declining in October, as a result of improvements in the food
situation and the strengthening of the rupiah. It is also welcome
that interest rates have begun to decline."
Camdessus emphasized that the Indonesian authorities need to
continue to make rapid progress in several key structural areas,
particularly in domestic banking and corporate debt restructuring.
"Together with the consolidation of the progress in stabilization,
these reforms will create the basis for a sustained recovery of
output."
(end text)
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Source APC Newsgroup: act.indonesia