The International Monetary Fund completed its seventh review of Indonesia's performance under $4.8 billion Extended Fund Facility arrangement.

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East-West Debt march 2003 news, update : INDONESIA

We are pleased to present another issue of East-West Debt news update on the debt situation in the world. International events influence the solutions for solving overdue trade and bank debts. East-West Debt can offer our readers attractive financial solutions for solving non-performing trade and bank debts ...

... thanks to the expertise of our international network of experts. East-West Debt is an international financial company specialised in the recovery of overdue debt. To be successful to our clients, we give the highest priority to attractive creativity, quality and integrity for solving overdue debts in high risk countries.

East-West Debt offers financial solutions to multi-nationals, banks, governments, and insurance companies in solving overdue debts in high-risk countries in:

Africa,

the Middle East,

Eastern Europe,

Latin America,

South-East Asia.

For solving overdue debts, East-West Debt is using the following solutions:

debt equity swaps

debt for counter-trade

debt for debt swaps

debt collection

international litigation

debt recovery

defaulted emerging market debt

Indonesia

The International Monetary Fund completed its seventh review of Indonesia's performance under $4.8 billion Extended Fund Facility arrangement. This opens the way for release of a further $365 million, bringing the total amount drawn under the arrangement to $3 billion. Indonesia has made continued progress in program implementation since the last review. Macroeconomic developments in 2002 have been favorable, with steady economic growth, moderate inflation, and a strengthened balance of payments. However, the economic outlook has deteriorated as a result of the terrorist attack in Bali.

Indonesia has also made important progress during 2002 in laying the foundation for a durable improvement in macroeconomic fundamentals. Despite a small breach in the first quarter, the execution of the 2002 budget was brought back on track. The budget for 2003 achieves an appropriate balance between fiscal and economic targets. It ensures further reduction of public debt and provides necessary support for the economy in the aftermath of the Bali attack.

The wise monetary policy has contributed to a further decline in inflation, which is expected to reach single digits by the end of the year. While there was some short-term weakness in the rupiah immediately following the Bali attack, the fundamental strength of the currency has allowed a further easing of monetary conditions. A continued cautious monetary policy will be important to ensure that the program's objectives are met. Accelerated progress in implementing legal and judicial reforms and establishing the rule of law is critical to improve governance and strengthen the investment climate. Investment continues to be weak because of the widespread perception of judicial corruption and weaknesses in the legal framework.

ALGERIA ARGENTINA BRAZIL EGYPT
INDONESIA IRAN IRAQ CONGO NIGERIA PAKISTAN TURKEY UKRAINE SAUDI-ARABIA AZERBAIJAN

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