Thursday, June 25, 2009

Australia Approves US$1-Billion-Dollar Loan for Indonesia

Australia's parliament has approved a 1-billion-US-dollar loan to help Indonesia sustain its budget and overcome the impact of the global economic crisis. The loan, pledged by Australian Prime Minister Kevin Rudd during a visit to Indonesia in December, is part of a 5.5-billion-dollar standby facility jointly provided by the Asian Development Bank (ADB), the Japanese government and the World Bank.

Under the joint scheme, the ADB has agreed to provide 1 billion dollars, Japan 1.5 billion dollars and the World Bank 2 billion dollars. The ADB said last month that the loan would allow Indonesia to enhance its financial safety net, better mobilize funds for commercial markets and maintain financial sector stability. The bank said the crisis had significantly hindered Indonesia's ability to access funds from credit markets.

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