Tag Archives: Govt Calms Worries Over Foreign Debts As Rupiah Weakens

JakartaPost – Govt Calms Worries Over Foreign Debts As Rupiah Weakens – 27 August 2013

Jakarta Post

The government is trying to calm the debt market, reassuring it that it has sufficient funds at its disposal to pay its dollar debts, as the local currency continues to weaken against the US dollar.

Investors are concerned that the increasingly weak rupiah together with the sharp spike in bond yields will swell the government’s debt payments and place a heavy burden on its coffers.

They say any further pressure on the state’s funds may cause the state budget deficit to breach the threshold of 3 percent of gross domestic product (GDP), which would violate the law.

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