IMF Won't Review Indon If Bk Case Unresolved - Paper (fwd)

[Robert Weissman <rob@essential.org>]

Dow Jones Newswires
September 1, 1999
IMF Won't Review Indonesia If Bk Case Unresolved - Paper
JAKARTA -- The International Monetary Fund won't conduct the next review of
Indonesia's economy unless the government resolves the Bank Bali case, a
local newspaper reported Thursday.
The daily Bisnis Indonesia quoted the IMF's top official for Asia and
Pacific, Hubert Neiss, as saying the next review is scheduled for
mid-September. The review is a prerequisite for the disbursement of IMF
loans
to Indonesia.
"We'll come only if the Bank Bali case is resolved," he was quoted as
saying.
Neiss said the Bank Bali case impaired Indonesia's economic recovery and
would hurt international confidence in the country.
Earlier, the World Bank threatened not to disburse a loan to Indonesia if
the
government failed to handle the Bank Bali case properly.
The case involved the transfer of $80 million from Bank Bali to a company
controlled by an official of the ruling Golkar party.