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Needed: A Commitment Not to Run Up More Debts

Monday, October 23, 2000

It really would be best to stop the annual new loans negotiation ritual with the Consultative Group on Indonesia (CGI) because in addition to having too much debt, Indonesia's ability to repay is now being questioned.

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THE New Order euphemism that conveniently converted debt into aid is now no longer valid. And, following the CGI meeting in Tokyo, Indonesia's debts just get bigger and bigger, especially when one takes into account the additional loans totaling US$530 million. There are also more conditions attached to the loans, including supervision by the creditors in exactly the same way as with the International Monetary Fund (IMF).

So now, with the curren

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