The World Bank yesterday approved its largest ever loan to a country not classified as being in crisis when its board signed off on a “unique” $2 billion contingency facility to Indonesia to support government spending and external fundraising during the current market turmoil.
The money, the largest ever World Bank loan to Indonesia, is part of a $5.5 billion fund which also involves Japan, Australia and the Asian Development Bank.
This is the deal that the gentleman I met at the Mayfair Hotel, from the Asia Development bank, was working on. He confessed to me there was tons of corruption and that at the level just underneath him it was not always possible to track where the money was going.
On Reserve Primary Fund debâcle, see also article of Sept. 17 in US News and World Report by Katy Marquart:
ReplyDeletehttp://www.usnews.com/blogs/new-money/2008/9/17/reserve-primary-fund-investors-may-lose.html