News Brief No. 97/23

News Brief: Camdessus Says IMF Approval of Indonesian Credit Marks an Important Step in Stabilizing Regional Financial Markets

November 5, 1997

Michel Camdessus, the Managing Director of the International Monetary Fund (IMF), said today’s approval by the IMF Executive Board of a US$10 billion three-year stand-by credit for Indonesia "marks an important step in the process of stabilizing the financial markets in Southeast Asia. The bold policy actions now being undertaken by the authorities should not only help restore confidence in the Indonesian economy, but also do much to help calm the turmoil that has been sweeping the region since July.

"I would like to applaud the wide-ranging measures Indonesia has developed to address its economic difficulties. These measures are consistent with the new strategy that was adopted by the IMF membership last year, The Partnership for Sustained Growth. Under its program, Indonesia has committed itself not only to the continuation of appropriately tight financial policies and to a bold restructuring plan for the financial sector, but it is also attacking the obstacles that have accumulated over the years--such as the monopolies and the misallocation of resources that are serious impediments to economic progress.

"Indonesia’s adoption of a program going considerably beyond the indispensable strengthening of the macroeconomic framework is anchored in many difficult decisions taken by the authorities. However, I believe that they were decisions necessary for Indonesia to return to the path of sustainable high quality growth, to maintain its economic gains into the next millennium, and to play its key role in the region. They will greatly benefit the people of Indonesia, particularly the poorest," Camdessus said.