Paskah Hopes For Debt Restructuring by CGI
Tuesday, 18 April, 2006 | 15:46 WIB

TEMPO Interactive, Jakarta: The Minister of National Development Planning/ Head of National Development Planning Agency (Bappenas), Paskah Suzetta, still hopes that creditors will carry out the restructuring or rescheduling of foreign debts, although the World Bank has explicitly refused. At least, he said, in the Consultative Group on Indonesia (CGI), the wish could materialize.

Paskah said several circles requested that the government propose the debt restructuring to the donor organizations or countries to lessen the state budget burden. The aspiration was also mentioned in the meeting with the World Bank President, Paul Wolfowitz, by asking the World Bank to lead the CGI meeting.

However, according to Paskah, the result was not as expected. Wolfowitz seemed not to agree with the input. But the government will not lose heart. “We will discuss it in the CGI forum. So the World Bank refuses, but the CGI agrees,” said Paskah in Jakarta yesterday.

Up to now, the government has asked that foreign debt rescheduling be done through the Paris Club creditors’ forum. But the requirement is the government must carry out the International Monetary Fund (IMF) programs. The government no longer engages in IMF programs. On the other hand, CGI is the forum for the government to ask for new loans.

Retno Sulistyowati