May 07, 1999
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| May 07, 1999 | atimes.com | |
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| Southeast Asia IMF director praises Indonesia's recovery process JAKARTA - The IMF director for Asia Pacific, Hubert Neiss, said Wednesday the process of Indonesia's economic recovery has been commendable. Neiss said he based his evaluation on the strengthening of the rupiah and the decreasing rates of inflation, progress which the IMF could not foresee six months ago. He made the statement following a meeting with President BJ Habibie here to discuss Indonesia's economic recovery and its bank restructuring program. According to Neiss, the process of Indonesia's economic recovery has been impressive with the reduction in bank interest rates and the decline in inflation rates. He noted that the rupiah is also strengthening. ''It is thus time to cut further the bank interest rates,'' Neiss observed. Asked how much would be the ideal cut, he refused to cite any figure, saying he is not good at predicting. He claimed however that a further cut on bank interest rates would enhance market conditions. Neiss also discussed with Habibie ways to retrieve the funds of state-owned banks, now caught in non-performing loans to conglomerate-owners. He pointed out that the more funds can be retrieved, the more assets can be recovered, which is good for the restructuring of the state-owned banks. Meanwhile, Neiss disclosed that the IMF has decided to provide Indonesia $1 billion more, which will soon be released in stages. He stressed that if the new aid happens to be cashed on the eve of the general election, it will be a pure coincidence and has no political ties with the election. (Asia Pulse/Antara) | |||||||||
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