1. Most Discussed
  2. Gainers & Losers

Loan Extension for $1Billion to Indonesia

  1. ravishankaray

    11,087 Posts.

    « Prime Minister Abbott tightens rules on foreign purchases of farming land | Main | The incredible legal manoeuvrings in the Fair Work Commission prosecution of Craig Thomson »

    http://www.michaelsmithnews.com/201...rs-australia-announces-extension-of-1bn-.html
    Thursday, 12 February 2015

    As Indonesia prepares to shoot two Australian drug-traffickers, Australia announces extension of $1BN loan to Indonesia

    Announced yesterday here.
    NATIONAL INTEREST STATEMENT: LOAN AGREEMENT BETWEEN COMMONWEALTH OF AUSTRALIA AND REPUBLIC OF INDONESIA

    Extension of the Loan Agreement between the Commonwealth of Australia and the Republic of Indonesia for a standby loan for A$1 billion

    February 2015
    Summary

    This document is a national interest statement for the recent extension of the expiry date of the Loan Agreement between the Commonwealth of Australia and the Republic of Indonesia for a standby loan facility of A$1 billion, signed on 19 July 2013. It was tabled in compliance with the requirements of the International Monetary Agreements Act 1947 (Cth.) (IMA Act).
    On 19 July 2013, Australia entered into a standby loan agreement with Indonesia to provide A$1 billion in contingent financing. This agreement is part of a multilateral action to support Indonesia led by the World Bank and including the Asian Development Bank (ADB) and Japan. The agreement was due to expire on 31 December 2014, but this has been extended to 30 June 2015 at the request of the Indonesian Government.
    This is a precautionary facility designed to safeguard Indonesia's economy, and in particular key development expenditures, from the potential impact of increased global and regional financial market volatility, such as that arising from tightening monetary policy in the United States or unconventional monetary policy settings in the Euro area or Japan. Reflecting the purpose of this facility as a financing source of last resort, the loan can only be drawn down if Indonesia becomes unable to fund its budget through sales of Indonesian Government securities without paying excessively high financing costs.
    Australia provided Indonesia access to a similar World Bank-led loan facility to the value of US$1 billion in 2009 to assist during the global financial crisis. This facility was never drawn down by Indonesia, and expired on 31 December 2010.
    Providing this facility to Indonesia enhances Australia's diplomatic and economic interests, through strengthening the important relationship between the two countries, and by supporting the economic stability of Indonesia and the region.

DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top

Thank you for visiting HotCopper

We have detected that you are running ad blocking software.


HotCopper relies on revenue generated from advertisers. Kindly disable your ad blocking software to return to the HotCopper website.

I understand, I have disabled my ad blocker. Let me in!

Need help? Click here for support.