Indonesia to help IMF with loan
Thu, June 28 2012 20:20 | 2445 Views
Jakarta (ANTARA News) - The Indonesian government plans to offer up to US$1 billion in loans to help the International Monetary Fund strengthen its capital.
"We are processing it [the loan] to help maintain the world`s economy, so that it does not become worse," Indonesian finance minister Agus Martowardojo said.
"We are processing it [the loan] to help maintain the world`s economy, so that it does not become worse," Indonesian finance minister Agus Martowardojo said at the parliament building here on Thursday.
He added that the loan would be up to a maximum of US$1 billion, which was still being processed for approval.
Agus said IMF needed extra capital, adding that the government`s decision to provide the financial aid highlighted Indonesia`s good economic condition and its commitment to safeguarding the global economy from the current European crisis.
"Now we can give a loan to IMF, showing that our economic condition is good. We must also show our concern for the world`s economic condition which needs to be improved," he explained.
The minister said the loan would not be sourced from the national budget, but from the country`s foreign exchange reserves.
"The aid to IMF will remain in the Indonesian balance sheet as foreign exchange reserve but will be recorded at the IMF as a loan," he added.
At the recent G-20 Summit in Los Cabos, Mexico, participant countries had made a commitment to support IMF financially so it could carry out its surveillance function.
The G-20 leaders fully supported the agreement made by finance ministers and central bank governors to provide IMF with US$430 billion "which would be collected through bilateral arrangements between donor countries and the IMF" to carry out its operations.(*)
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