The World Bank is prepared to extend a low-interest loan package to Indonesia to ease the country’s USD80 billion budget deficit. “We have modernized all our loan schemes and lowered interest rates. Our interest rates are based on London Inter-bank Offered Rate, or LIBOR, only while interest on Indonesia’s global bonds is about the same as LIBOR plus 200 basis points,” remarked Joachim von Amsberg, the agency’s country director. “To maintain a conducive fiscal situation, the government needs favorable financing sources. We want Indonesia to benefit from our loans in the interest of the public,” the official added. The offer is separate from the bank’s earlier proposal to supply the Southeast Asian country with USD500 million to help underwrite infrastructure project costs. (Source: World Bank ready to offer RI low interest loan/Antara News)
