FROM THE OFFICE OF PUBLIC AFFAIRS

We welcome Indonesia’sannouncementof a strong package of macroeconomic policies and structural reforms, which will besupported by financing from the International Monetary Fund (IMF), the World Bank and theAsian Development Bank (ADB).

The United States and a number of othercountries in the region are prepared to provide contingent additional financial supportthat could be made available for a temporary period, if necessary to supplement theresources made available by the IMF and Indonesia’s own reserves. This support wouldbe conditioned on the implementation of an appropriate set of macroeconomic and structuralpolicies supported by the IMF, the World Bank, and the ADB. The United States is preparedto provide up to $3 billion in assistance from the Treasury’s Exchange StabilizationFund.

The Treasury and the Federal Reservearealso in the process of consulting with countries in Asia on ways to enhance mechanisms forregional cooperation and, more generally, to strengthen the capacity of the IMF and theinternational financial system to prevent and, when necessary, respond to financialcrises.

Financial stability around the world iscritical to the national security and economic interests of the United States. We continueto monitor closely developments in emerging market economies. These countries are not onlykey markets for U.S. exporters, but are also crucial to our efforts to promote growth,peace and prosperity throughout the world. In today’s global economy, the health andprosperity of the American economy depend importantly on the stability of the globalfinancial system and the economic health of our trading partners.