12 May 2007
Bappenas Reviews Foreign Loan Agreement Clause
The National Development Planning Agency (Bappenas) will review the clauses in the foreign loan agreement document.
According to the State Minister for National Development Planning, Paskah Suzetta, so far there is not any room for the government to change the current clauses in the foreign loan agreement document. The government could only agree upon the foreign loan agreement document. “Of course this has the potential to cause unfairness for debtor countries (Indonesia),” he said in Jakarta yesterday (10/5).
The composition of the foreign loan agreement document is a crucial phase. During this phase, he said, there must be a mastery of many substances such as financial and legal. “The two aspects are important prerequisites in the negotiation process,” he said.
So that the negotiation agreement is beneficial for Indonesia, the government will compose a guide of negotiations and composition of foreign loan agreement documents. The guide is aimed at making sure the bargaining positions of the government and the donors are equal. As a result, the relation between debtor and creditor is beneficial for each and this reduces the interest of one side. “The guide must be accompanied by the increase of the negotiators' ability,” said Paskah.
On Wednesday (9/5), Bappenas' Director of Development Funding Monitoring and Evaluation, Benedictus Benny Setiawan said the requirements and grant program or loans are made only for the creditors' interest. This can happen because the diplomatic ability of Indonesians is still weak. However, now the government's bargaining position has increased so it can decide by itself the project priority or programs funded by grant or loan in line with the work and development agenda
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source
According to the State Minister for National Development Planning, Paskah Suzetta, so far there is not any room for the government to change the current clauses in the foreign loan agreement document. The government could only agree upon the foreign loan agreement document. “Of course this has the potential to cause unfairness for debtor countries (Indonesia),” he said in Jakarta yesterday (10/5).
The composition of the foreign loan agreement document is a crucial phase. During this phase, he said, there must be a mastery of many substances such as financial and legal. “The two aspects are important prerequisites in the negotiation process,” he said.
So that the negotiation agreement is beneficial for Indonesia, the government will compose a guide of negotiations and composition of foreign loan agreement documents. The guide is aimed at making sure the bargaining positions of the government and the donors are equal. As a result, the relation between debtor and creditor is beneficial for each and this reduces the interest of one side. “The guide must be accompanied by the increase of the negotiators' ability,” said Paskah.
On Wednesday (9/5), Bappenas' Director of Development Funding Monitoring and Evaluation, Benedictus Benny Setiawan said the requirements and grant program or loans are made only for the creditors' interest. This can happen because the diplomatic ability of Indonesians is still weak. However, now the government's bargaining position has increased so it can decide by itself the project priority or programs funded by grant or loan in line with the work and development agenda
_____
source
Labels: Foreign, Internet News, Loan
