Beny Irzanto
Tue, 09 Nov 2004 05:11:05 -0800
Dear all, This is a very good news from an industrialized country to give such helps for a developed country in reducing proverty and boosting a sustainable development. Hopefully this will be followed by other countries as well... Regards, ------------------------------------------------------ http://www.alertnet.org/thenews/newsdesk/JAK4483.htm Germany to cut debt if Indonesia builds schools 08 Nov 2004 09:24:57 GMT Source: Reuters (Adds possible deals with U.K., France; economist comment) By Adriana Nina Kusuma JAKARTA, Nov 8 (Reuters) - Germany will cancel 23 million euros ($29.83 million) in Indonesian debt in exchange for Jakarta's promise to use the funds for education and fighting poverty, the German embassy said on Monday. Indonesia and Germany signed an addendum that could lead to a similar 25 million euro deal for environmental projects and the finance ministry said it is also talking to the United Kingdom and France about debt reduction in exchange for using some of the money on local projects. "The German government agreed to cancel EUR 23 million of Indonesia debts ... if 50 percent of that amount will be reinvested by the Indonesian government into a project for poverty alleviation, resource protection and education," a statement from the German embassy said. A senior finance ministry official told Reuters the government is also discussing a possible agreement in which PT ANZ Panin Bank would take over debt from the United Kingdom and France in exchange for new government commitments on domestic projects, "ANZ Panin is among the parties who are interested in buying Indonesian government debt," said Mulia Nasution, a director-general at the ministry, adding that he could not comment on the amount. "This is part of the 100-day programme of the new government. Hopefully we can settle this in the next two months," he said. Local media reported PT ANZ Panin Bank -- which is jointly owned by the Australia and New Zealand Banking Group Limited <ANZ.AX> and PT Pan Indonesian Bank Tbk <PNBN.JK> -- was interested in acquiring $70 million of debt. ANZ Panin officials were not immediately available for comment. Deals like this could be an increasingly attractive option for Indonesia as it is no longer able to reschedule its debt under the Paris Club scheme after deciding not to extend a programme with the International Monetary Fund when it expired last year. Although the amount being cancelled is small compared to Indonesia's total foreign debt of around $80 billion, analysts say the German deal could pave the way for similar arrangements with other countries. "It's positive for Indonesia, with the current condition of our budget. Deals like that can give the government some room to provide some stimulus for the economy," Purbaya Yudhi Sadewa, senior economist at Danareksa Research Institute, said. (With additional reporting by Harry Suhartono) ($1=0.7711 Euro) [Non-text portions of this message have been removed] ------------------------ Yahoo! Groups Sponsor --------------------~--> $9.95 domain names from Yahoo!. Register anything. http://us.click.yahoo.com/J8kdrA/y20IAA/yQLSAA/GEEolB/TM --------------------------------------------------------------------~-> Kampanye open-source Indonesia - http://www.DariWindowsKeLinux.com Solusi canggih, bebas ikatan, dan bebas biaya Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/ekonomi-nasional/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/