Article: IMF, Indonesia Agree on Bailout Revision; New Strictures on Suharto Government Allow Resumption of $43 Billion Loan

The International Monetary Fund reached an agreement yesterday with Indonesia that allows the country's $43 billion international bailout to resume. But the IMF, wary of Indonesia's propensity to backslide on economic reforms, has added provisions intended to keep the government of President Suharto on a short leash.

The new accord, which Indonesian officials made public at a news conference in Jakarta early today, requires the government to take concrete actions before IMF funds are disbursed. That is because, in the view of U.S. and IMF officials, Suharto has broken pledges he made under two previous agreements to dismantle monopolies and cartels run by his relatives and cronies.

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