IMF looks at further financial aid for Indonesia

The International Monetary Fund said yesterday it may lend more money to Indonesia to protect its poor from the effects of the…

The International Monetary Fund said yesterday it may lend more money to Indonesia to protect its poor from the effects of the country's ravaging economic crisis.

"That certainly is a possibility," said IMF Asia-Pacific director, Mr Hubert Neiss shortly after the fund reached a fourth agreement with Indonesia's government, unlocking $40 billion (£28.5 million) in stalled rescue funds to help revive the country's battered economy.

"The whole extra financing is now under intensive discussions among donors and among institutions, and the final outcome may well include additional provision of IMF resources."

The two sides said Indonesia needed extra financing estimated at between $4 billion to $6 billion to bridge a budgetary gap arising from the need for more subsidies on food and other essentials.