ID :
34174
Fri, 12/05/2008 - 21:01
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Shortlink :
http://m.oananews.org//node/34174
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US$5 BLN IN STANDBY LOANS AT RI'S DISPOSAL: MINISTER
Jakarta, Dec 5 (ANTARA) - A number of foreign parties have set aside US$5 billion in standby loans which Indonesia can use any time to cover a deficit in its 2009 state budget, a minister said.
"The standby loans, made available by Japan, Australia, the Asian Development Bank (ADB) and the World Bank, total US$5 billion," Finance Minister Sri Mulyani Indrawati said here on Friday.
She said that Indonesia could use or not use the standby loans, depending on the cost that had to be borne in using other financing alternatives.
"We can use bonds if costs for borrowing have dropped, or the market has returned to normal, or the global crisis has stopped and global bonds have been restored," Mulyani who is also coordinating minister for economic affairs said.
On the other hand, she said, if the price was still high that would pose high risks, the government would then resort to the standby loans.
"This is what we are discussing. Later on, when we have reached agreement, we will announce it in January," the minister added.
She said that the (financial) support that was made available and had been confirmed was encouraging which meant that apart the 2.8 billion dollars made available in the state budget there were still five billion (outside the state budget).
The minister said that in normal condition, half of the state budget deficit financing would be covered with funds earned from the issuance of state debentures (SUN).
"Usually it is covered with funds taken from the issuance of various kinds of SUN or bonds at home," Mulyani said.
She said that the remaining half was usually covered with funds which came from bilateral or multilateral commitments worth some 2.8 billion dollars.
The minister said that the global financial crisis had brought about world's stocks and financial market to undergo upheaval.
"As a result, prices or yields become uncertain and not normal. As an example, in Indonesia five years ago the interest rates were still under nine percent, it turned out now to be 15 percent as soon as the crisis hit," she added.
"The standby loans, made available by Japan, Australia, the Asian Development Bank (ADB) and the World Bank, total US$5 billion," Finance Minister Sri Mulyani Indrawati said here on Friday.
She said that Indonesia could use or not use the standby loans, depending on the cost that had to be borne in using other financing alternatives.
"We can use bonds if costs for borrowing have dropped, or the market has returned to normal, or the global crisis has stopped and global bonds have been restored," Mulyani who is also coordinating minister for economic affairs said.
On the other hand, she said, if the price was still high that would pose high risks, the government would then resort to the standby loans.
"This is what we are discussing. Later on, when we have reached agreement, we will announce it in January," the minister added.
She said that the (financial) support that was made available and had been confirmed was encouraging which meant that apart the 2.8 billion dollars made available in the state budget there were still five billion (outside the state budget).
The minister said that in normal condition, half of the state budget deficit financing would be covered with funds earned from the issuance of state debentures (SUN).
"Usually it is covered with funds taken from the issuance of various kinds of SUN or bonds at home," Mulyani said.
She said that the remaining half was usually covered with funds which came from bilateral or multilateral commitments worth some 2.8 billion dollars.
The minister said that the global financial crisis had brought about world's stocks and financial market to undergo upheaval.
"As a result, prices or yields become uncertain and not normal. As an example, in Indonesia five years ago the interest rates were still under nine percent, it turned out now to be 15 percent as soon as the crisis hit," she added.
