deals Indonesia - trading solution New publications Sorry! i fa! i Sustainability Final comments Wh at S NewS Issue 10' December 1999 I In the wake of the Indonesian crisis, a number of schemes have been intro- duccd by a variety of players to help the struggling economy, and especially its ex port earners. Most have been less than successful, in spitc of considerable public- ity, because they fail to tackle corporate risk. This has led to a situation where in ternational banks are reluctant to take In donesian country and corporate risk. 'So,' says Mauk Faber of global structured trade finance, 'when it comcs to finding banks willing to issue L/Cs, exporting manufacturing companies with high re- liance on imported raw materials face ma jor problems.' In a move to facilitate the export trade crucial to getting the Indone sian economy back on its fect, Rabobank International got together with the World Ranks International Finance Corporation (IFC) and the Netherlands Development Finance Corporation (FMO) to arrange a USD 120 ntillion credit facility for short term trade finance of Indonesian export actitivies. The related risk is shared cqually (USD 40 million) by the thrce players who signed the agreement in Utrecht on 10 December. This will be the A whole new range of publications on the world food retail markets was publishcd to coincide with the global F&A conference held in Paris in carly September. How your office benefits front the huge marketing and PR success of the conference depends on how you handle your follow up - not only to participating clients, hut primarily to those who were unable to attend. We wanted to remind you that therc a number of tools and first IFC transaction with Indonesia since the recent elections. The credit facility is designed to support export oriented Indonesian companies which generate income from hard curren- cies. These corporates can arrange fund- ing for the import of (raw) materials nec- essary for their export production. In addition, they can also arrange prc-fi- nance for exports and the availability of working capital for local purchasing. Last month's product news and deal pages were memorable, not least for the editors' ability to leave people out and fail to fit names to faces - let's sec if we can get it right this time. The CANFAS deal should have included Martine Boon, Licsbeth de Schutter and Louise Derbes. Our picture of the forfaiting team should have read: Richard Whiting (left), Paul Panders (right) - wc did manage to get Gayle Fisher right. materials available to help support your follow up: The Global Food Supply and Retail Conference summary (copies will be sent to participants automatically); The World Food Markets market study; The fight for stomach share special report; and World Food Markets Map. To order or for more information, call Marketing on 51 30 216 2S04. Credit facilities are granted for 180 days only. This means that initially a quarter of a billion US dollars will be made available annually to support Indonesian exports. The facility could be increased to USD 140 million depending on demand. In order to spread risk, Rabobank Singapore will act as facility bank, with Rabobank Duta Indonesia as agent and relationship manager. The IFC guarantees the funds made available by Rabobank Singapore. Counter guarantees of USD 40 million each have been given to the IFC by both the Rabobank Group and the Dutch Development Finance Corporation. All three partners will coop- erate in selecting Indonesian companies eligible for this funding. Rabobank Duta Indonesia and Rabobank Singapore will share responsibility for credit line control. Says Faber, 'Our people in Jakarta will, of course, be looking to use the facility primarily to support food and agribusiness companies.' >- Continued from page 3 The key macroeconomic issues in the medium term concern the sustainability of the massive budget deficits combined with low interest rate policies that were used to jumpstart the economies of Japan, East Asia, and other nations in the developing world. 'To the extent that domestic struc- tural reform proceeds slowly and un- evenly, the self sustained economie growth momentum in these countries is yet to be assured,' the forecast said. Finally, in an observation of both immedi- ate and long term importance, the forecast addressed the apparent failure of the re cent World Trade Organization meeting in Seattle to launch a new round of trade lib- eralization. The meeting drew diverse civic groups concerned about the perceived negative effects of globalization and commercial and financial liberaliza- tion. 'Unless the governments and business community better address the legitimate concerns and articulate the reality and potential benefit of globaliza tion' writes RI's chief economist Hung Q. Tran, 'the intellectual back ground to economie policy making may tilt back toward protectionism which could threaten the foundation of the growth dynamism of the world economy.'

Rabobank Bronnenarchief

blad 'What's news' (EN) | 1999 | | pagina 19