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Japan bailing out Indonesia, blind leading the blind?
biz.yahoo.com
Monday April 6, 7:55 pm Eastern Time
Japan to extend $1 bln more to Indonesia-newspaper
TOKYO, April 7 (Reuters) - Japan appears set to extend an additional $1
billion in aid to Indonesia in the form of untied loans, a Japanese
economic daily said in its Tuesday edition.
The loans, to be extended through the Export-Import Bank of Japan, would
be aimed at facilitating economic reforms in the country, which has been
hit hard by currency devaluation and economic turmoil, the Nihon Keizai
Shimbun said.
The Export-Import Bank of Japan could not immediately be reached for
comment.
The paper said the loans would be extended to the Indonesian central
bank to provide a source of revenue for a trade-linked financial
guarantee system under which firms having difficulties settling import
payments could receive aid.
Additional emergency Japanese aid to Indonesia, which has been stalled
pending negotiations with the International Monetary Fund (IMF), would
also be extended as soon as possible,the paper said.
Indonesia and the IMF have been engaged in discussions about an
IMF-brokered economic reform package, with $3 billion due to have been
disbursed on March 15 delayed by a review of Indonesian reforms.
Expectations are high that a revised economic reform agreement will be
reached soon.
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