WASHINGTON:
The World Bank on Tuesday announced it
was ready to provide Indonesia with a $2 billion loan, a backstop against a
potential debt crisis in one of Asia's fastest growing economies.
The
World Bank said the loan, requested by the Indonesian government, would be held
as a contingency against "possible future shocks and volatility."
While
Indonesia has long seen growth rates that would be the envy of the United
States or European nations, the economy has slowed recently thanks to a drop in
export demand.
Jakarta
and the World Bank will hope the loan sends a message to markets that Indonesia
has the firepower to withstand moderate shocks, as it moves to implement
economic reforms.
Though
Indonesia currently enjoys better terms of borrowing than some indebted
European nations, its budget remains vulnerable to external shocks.
Any
deepening of the crisis is the eurozone or a slowdown in China or the United
States would hit the Indonesian economy hard.
Exports
account for around 26 percent of gross domestic product.
But for
now, the country appears to be weathering the storm.
According
to the Bank of Indonesia, the country will pay an interest rate of 3.85 percent
on 10 year bonds, more than Greece pays for three month bonds.
GDP
expanded 6.3 percent year-on-year in the first quarter.
-
AFP/ac
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
Dear
Reader,
May I
invite you to visit our new blog: IIMS-Asean http://iims-asean.blogspot.com/
News
and activities of the International Institute of Medicine and Science Asean
Chapter of IIMS, Inc. California, USA - Health care, Life Science, Education,
Research, Philanthropy. Asean is the economic organisation of ten countries
located in South East Asia: Brunei Darussalam, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. IIMS is a
non-profit organization.
No comments:
Post a Comment