Imf, Us And Japan Seek To Calm Turmoil

IMF and US officials touring Asia's capitals sought to revive investor confidence and calm financial turmoil in emergency talks with government leaders on Monday.

Currencies held steady in Jakarta, improved in South Korea but fell elsewhere on fears of higher interest rates and the likely liquidation of Hong Kong brokerage Peregrine.

In Jakarta, State Secretary Murdiono reported that President Suharto, in a 35-minute telephone conversation with Japanese Prime Minister Ryutaro Hashimoto, said his country would meet all debt obligations and fully implement reforms agreed with the IMF.

Positive signals emerged also in Seoul where South Koreas finance minister reported International Monetary Fund managing director Michel Camdessus saying the country's financial situation had been improving since November.

 

Camdessus was quoting as saying an atmosphere for loan roll-overs and supports for South Korea had been created in the international financial community -- but mutual cooperation would be needed to carry out promises South Korea made in exchange for a record $58 billion IMF-led bail-out package.

Indonesia has generally been perceived to be dragging its feet on reforms that strike at the heart of Suharto Inc -- the network of his family's enterprises that have thrived for years on government contracts and trade monopolies.

The plunge in the rupiah -- it fell to below 10,000 to the U.S. dollar last week compared to about 2,400 six months ago -- has thrown up an unprecedented political challenge.

Indonesia's best-known opposition leader, Megawati Sukar-noputri, on Saturday called on Suharto to step down and this was echoed on Monday by two prominent Moslem leaders.

A group of Indonesian students joined the chorus demanding the 76-year-old to quit, saying he was too old to lead the fourth most populous country.