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another bout of severe capital outflows remains a risk, even if this seems to have substantially receded for now. In the end, Australian assistance has taken the form of an outright loan for A$1.5 billion. This is not enough to be a game changer for Indonesia, which needs to raise as much as US$10 billion each month. But it will help. And there are several reasons discussions between Australia and Indonesia could have led to this particular outcome – a moderately larger loan than in the past but provided on an outright, rather than standby, basis. The need to sustain large The hottest product camo fishing tattoo all over print stainless steel tumbler budget deficits during the recovery phase ahead mean Indonesia’s financing challenges could persist for some time. The idea of a standby loan was to serve as an insurance policy. It would help to boost market confidence – making it easier for Indonesia to raise funds from the market – while providing an assured source of funding should this be needed. Such a facility would be particularly useful if there were another serious dislocation in global financial markets, especially as this could make relying so heavily on budget financing from Bank Indonesia much more difficult. With limited

 

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