JAKARTA -(Dow Jones)- The Asian Development Bank will provide Indonesia with $750 million in program and project loans this year, and will commit a further $1 billion in optional loans should the government deem them necessary, the ADB's president and its Indonesia chief told reporters Monday.
The ADB "will provide financial support for Indonesia's fiscal management through this proposed Public Expenditure Support Facility," ADB President Haruhiko Kuroda said.
The term Public Expenditure Support Facility refers to the multilateral and bilateral loan commitments the government has obtained to fund its expected budget deficit this year, commitments that total $6 billion, including the ADB's.
"We are also exploring a guarantee facility to support bonds, loans and other debt instruments issued by the government of Indonesia. The guarantee will lower the cost of financing for the government," he added without elaborating.
Ceppie Sumadilaga, the ADB's executive director for Indonesia, said the ADB will commit $500 million in standby loans and a further $500 million in optional extra program loans. The government will decide how much of those loans to take following its budget discussions, expected to conclude Wednesday.
-By Linda Silaen and Reuben Carder, Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com
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Publié le 16 Février 2009 Copyright © 2009 Dowjones