Indonesia has reached agreement with foreign banks on a programme to repay the country's overseas debt, estimated at eighty-billion dollars.

The agreement -- reached in Germany --means most Indonesian companies can delay repayment of their foreign loans for at least three years.

During this time it's hoped that the Indonesian rupiah will recover some of the value it's lost in the continuing economic crisis.

But some analysts say Indonesia's problems are so severe that the agreement may merely delay rather than resolve the debt crisis.

There are already warnings of increasing unemployment and food shortages later this year.