BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific Arabic Spanish Russian Chinese Welsh
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC NEWS
 You are in:  Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 


Commonwealth Games 2002

BBC Sport

BBC Weather

SERVICES 
Thursday, 21 May, 1998, 09:26 GMT 10:26 UK
World Bank presses for Indonesia reforms
Without economic reforms, will Indonesia's cash points continue to hold money?
The World Bank has called on Indonesia to introduce economic reforms faster than currently planned.

Egg sales in Indonesia
He's only selling eggs, but his economic future may depend on World Bank action
At the moment new elections are scheduled to take place in three to six months time. But Dennis de Tray, the World Bank director in Indonesia, warns that economic reforms must be introduced "much quicker than that".

According to Mr de Tray's assessment, the country's future depends on quick economic reforms, and he promised that his organisation would be ready to resume its operations in the country as soon as a credible and reform-minded government was in place.

He said the World Bank could help as soon as "we're sure that there is an acceptable degree of ... political commitment to these reforms."

The political earthquake which led to Mr Suharto's resignation on Thursday had prompted institutions such as the World Bank, the International Monetary Fund and the Asian Development Bank to put vital bail-out funds on hold.

World Bank president James Wolfensohn
World Bank president James Wolfensohn
The World Bank has promised to provide adjustment loans to Indonesia, designed to support a restructuring of the country's financial sector and long-term structural policy reforms.

The organisation planned to distribute up to $4.5bn over three years to support the reform programme.

The bank has been active in Indonesia since 1967, currently supporting 78 projects, most of them with an emphasis on poverty reduction.

Cumulative World Bank lending to Indonesia as of June 30, 1997 was approximately $23bn.

Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories