ADB agrees on US$300 M loan for Indonesia
November 17th, 2009 | by rarzi |The Asian Development Bank (ADB) agrees to provide US$300 million in loan to help Indonesia develop its capital market as part of the financial reforms underway in the country.
“The ADB board of directors agreed today to provide US$300 million worth of a second-tranche loan for the Cluster Capital Market Development Program,” it said in a press statement received by ANTARA here on Monday.
The bank said the aid program was designed to help open capital market potentials through long-term financing for infrastructure and other important development purposes.
It said the program would support reform policy designed to promote information openess and supervision, governance and strengthen investor protection, financial intermediation and diversification of financial products in the framework of creating a stronger and more efficient capital market.
The aid was the second after the extension of US$3000 in December 2007 by the ADB.
According to the bank, Indonesia is a potential developing country and has been managed well where banking sector contributes around 80 percent of assets of the financial industry.
However most of banking credits in the country are short-term while its capital and credit market are still relatively small and not liquid.
In view of that the ADB wished to participate in supporting the development of the capital and financial market in Indonesia ountry so that it would be more liquid.
antara
