World Bank warns over RI's bonds

Chief of World Bank representatives in Indonesia Mark Baird warned that the plan on issuance of asset-backed bond worth up to US$1 billion guaranteed with the sale of natural gas from West Natuna to Singapore could be against the requirements set in the World Bank's loan tranche.

The plan on the securing the natural gas export to Singapore is considered by the government as one of the most effective ways to refinance the domestic debts mounting due to bank recapitalization program.

Theoretically, the debtors of the World Bank are prohibited form pledging their assets to other creditors. This is intended to guarantee the payment of the loans from the World Bank. (*)