Facing Mr. Pallez' Threat

The Paris Club is tightening the screws on Indonesia regarding the letter of intent with the IMF and Natuna gas asset-backed securities. It's threatening Indonesia with having to pay its US$2.8 billion debt. Many observers are concerned, but Rizal Ramli remains upbeat.

April 24, 2001

Bad tidings from Stephane Pallez, the coordinator of the Paris Club of creditor nations. He warns Indonesia that if the government doesn't pay its debts that have matured, the Paris Club II agreement may have to be cancelled. All this is due to hiccups in the negotiations between the government and the International Monetary Fund (IMF). The Paris Club II agreement, signed on April 13, 2000, requires the government to work together with the IMF...

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