Monday, 7 September 2009

Standby Loan Facility may be extended to 2011

Indonesia may extend the remaining unused US$4.75 billion in standby loans by a further year to 2011 as the country may not use all the facility for budget financing during 2010, Finance Ministry says.
The government has received $5.5 billion in standby loans, sometimes referred to as deferred drawdown options (DDOs), from the Australian government ($1 billion), the Japanese government ($1 billion), the Asian Development Bank (ADB) ($1.5 billion) and the World Bank ($2 billion). Of the $5.5 billion set aside, Indonesia has so far used only $750 million to guarantee its first ever issue of yen-denominated bonds (samurai bonds) in Japan, Finance Minister Sri Mulyani Indrawati told a press conference Wednesday.
This year, the budget deficit is estimated to reach Rp.129.8 trillion (US$12.77 billion), or 2.4% of the GDP – while in 2010 it is predicted to be lower only Rp.98 trillion or 1.6% of GDP.
Source: The Jakarta Globe, p. 13, 3 Sept.09

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