Subject: IMF suspends talks on economic program with
Indonesia
Date: Fri, 10 Sep 1999 15:24:49 EDT
From: Joyo@aol.comIMF suspends talks on economic program with Indonesia
WASHINGTON, Sept 10 (AFP) - The International Monetary Fund suspended discussions with
Indonesia on its economic program, a fund spokesman said Friday.
"IMF management continues to keep under close review ongoing developments in
Indonesia and discussions for the next program review are on hold," said the IMF
spokesman, who asked not to be identified.
"Meanwhile, fund staff will continue to monitor economic developments seeking to
preserve as much as possible all that has been achieved during more than one year of close
cooperation," he said.
The International Monetary Fund, whose loans are helping Indonesia stave off financial
collapse, had warned Thursday of possible sanctions over the East Timor crisis.
IMF First Deputy Managing Director Stanley Fischer at the time described the situation
in Timor as "a political disaster."
In the wake of the 1997 Asian financial crisis, the international community put
together a 47 billion dollar rescue package -- 12.3 billion of it in the form of credits
from the IMF.
Some 10 billion of this has already been pumped into the Indonesian economy.
IMF Asia-Pacific director Hubert Neiss told CNN on Thursday an IMF mission due to
arrive in Jakarta in mid-September was "presently on hold," and renewed warnings
about the Bank Bali controversy which has mired government and banking officials in
scandal.
He indicated Indonesia would have to take action not only over East Timor but also over
the Bank Bali scandal if the next review of the bailout was to go smoothly.
The World Bank, which is also supporting the Indonesian economy, reminded Jakarta
earlier this week that during an aid donors' meeting in July it had promised to abide by
earlier agreements to enforce security in East Timor.
"Following through on the statement ... is a critical component of the policy
commitment of the government of Indonesia, setting the context in which the program of
international assistance agreed in July is to be realized," the World Bank said.
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