Govt considering initiative to loan to IMF

Govt considering initiative to loan to IMF

Minister of Finance Agus D.W. Martowardojo (ANTARA)

Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said the government is still considering the initiative to loan to the International Monetary Fund (IMF) as part of its commitment to strengthen the institution`s capital.

"We are still discussing the initiative to loan to the IMF," he said at the parliament building here on Tuesday.

The current global economic crisis that particularly affects Europe has had a far-reaching impact on developed nations and developing countries, he noted.

In this regard, Indonesia as a G20 member has a kind of responsibility to help the world economy recover from the crisis, he said.

"The assistance to the IMF is also part of the effort to prevent the crisis from endangering the global economy. That is the principle underlying the initiative to loan to the IMF. Moreover, the IMF once helped us so we will consider it," he said.

He added the government will discuss the initiative with Bank Indonesia since the loan, if realized, will come from foreign exchange earnings kept at the central bank.

Earlier, IMF Managing Director Christine Lagarde held meetings with President Susilo Bambang Yudhoyono and Vice President Boediono.

At the meeting, Lagarde praised Indonesia for maintaining high economic growth in the midst of global crisis.

She said Indonesia has positive economic growth, with strong macro economic indicators, including manageable inflation rate and low fiscal deficit.

Because of that, the IMF wants the Indonesian government to help the IMF, she said.

The IMF has said it needs US$450 billion to inject funds to countries having financial difficulties.  (S012/YH)