Rabu 06 Jun 2012 20:00 WIB

Govt’s new debt from World Bank

Rep: Nuraini/Satya Festiani / Red: Yeyen Rostiyani
US dollar (illustration)
Foto: Antara/Prasetyo Utomo
US dollar (illustration)

REPUBLIKA.CO.ID, JAKARTA – Indonesian government has signed a new agreement of debt in the amount of two billion USD with World Bank. The debt will be input as contingency loan. 

Indonesia needed a total of 5.5 billion USD of contingency loan, the Director General of Debt Management in the Ministry of Finance, Rahmat Waluyanto, said. Government has also received another loan from Asian Development Bank (ADB) in the amount of 500 million USD.

“Besides that, there are some other candidates also interested,” Waluyanto said on Wednesday.

The amount of contingency loan is similar with that of 2009-2010. The rest will be obtained from other resources, like multilateral and bilateral organizations.

Waluyanto expressed his expectation that Australia would also offer such loan. “But, it needs parliament approval,” he said.

The contingency loan will be used in term the market condition is getting worse. The parameters of the condition, among others, are the fallen price of Sovereign bonds (SUN) and no market access for government.

“Once the government cannot issue sovereign bond to finance the state budget, the loan will be used,” he explained.

 

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