The loan is the first of three structural measures approved by the Bank Group in response to the Asian financial crisis.
The impact of the late-90s Asian financial crisis, along with a number of other adverse effects (forest fires, drought, and political instability brought on by the illness of President Suharto) resulted in an abrupt end to thirty years of steady, if at times uneven, economic development in Indonesia. In an effort to address the financial crisis, the World Bank Group approves three structural measures in quick succession. The $1 billion Poverty Reform Support Loan, as part of an integrated package of external assistance coordinated with other donors, will assist the Government of Indonesia during the first stage of policy reform implementation designed to address the economy's free fall and mitigate the effects of the economic crisis and drought on the poor. A second Policy Reform Support Loan and a Social Safety Net Adjustment Loan will be approved by the Bank Group in May 1999.
Oct. 21, 1997
The briefing note is for East Asia and Pacific Vice President Jean-Michel Severino and describes economic developments in six countries, including Indonesia, since the beginning of the financial crisis (1865940).
Feb. 24, 1998
The minutes describe the February 11th meeting of the Operations Committee during which the Policy Reform Support Loan was discussed (30010887).
Feb. 11, 1998
The memorandum describes the various challenges to be considered and questions to be answered when discussing the Policy Reform Support Loan (30010887).
P056230: Approved July 2, 1998
The project profile contains an overview of the project, financial details, and a list of project documents related to the project.
The report rates the outcomes of the project, offers lessons learned, and describes the impacts of the project.
The report and recommendation of the president outlines the policy reform adjustment loan and reforms that the government has agreed to implement as a condition of lending.