Updates from the Managing Director

  American Businesses keen to join OPIC October 29th, 1998 A memo issued to leaders of top US firms revealed that there would be “significant economic opportunities” in the near future. American firms have thus been closely monitoring developments in the IMF closely to explore the potential of investing in the “El Dorado” of developing Asian economies. As the economic crisis in Asia has yet to resolve itself and instead seems to be worsening, American equity has been floated as a possible option to bail countries out. This is not a new idea and would help US firms achieve their business development goals of expanding operations in the Far East. Donald Trump, leader of the Trump organisation shared candidly with Bloomberg, “Yeah, of course, we’re looking for an opportunity to crack the Asian market and if they need our help, they can contact me.”

 [LOIMOU] Lissakers

IMF comes to Indonesia’s rescue October 20th, 1998 Thousands of Indonesians gathered at Jakarta’s Merdeka Square as news came out of the International Monetary Fund, who has just pledged to support Indonesia’s economy with a loan of SDR 7 billion. This timely injection of funds into Indonesia’s economy provides some much-needed relief to the hundreds of thousands of Indonesians, who have been apprehensive towards the nation’s economic outlook. Also part of the package is a Foreign Direct Investment (FDI) plan that hopes to create more jobs for Indonesia’s growing youth population. Ahmed, a 20-year old student, said, “This couldn’t have come at a better time. I’m hopeful that the government will hold through to its promises to use the funds in meaningful ways.” Ahmed also shared that the various frameworks proposed such as GRISPS and FINE would go a long way towards improving the tainted image of Indonesia’s financial institutions. The Bank of Indonesia has made massive promises pertain...

  LOI, MOU, LA, Aleksei V. Mozhin (Russia)

  Countries are confused as to why the IMF is discussing the implementation  of policies countries are yet to approve of; increasing widespread suspicion  of the IMF October 17th, 1998 The IMF’s most recent press release has stunned the Prime Ministers of countries like Thailand and  Indonesia, who are unsure as to why an announcement regarding policies the IMF has no control over, such  as individual domestic fiscal/monetary policy. Some have even taken it as an insult, seeing it as if the IMF  is mocking and insulting the sovereign decision-making of these nations. Existing protests within Thailand  have only gained more members, as anti-IMF sentiments start to forment.   Other strange statements, such as the U.S., France, Italy, etc, engaging in further trade negotiations despite  nothing actually occurring there, or a pledge of funds to France by the U.S. that has not materialised, have  only further confused the general public. ...

 [LA] Muhammed 1

  LOIMOU 3 - Muhammad

LOIMOU2_Alexandre Kafka

  The Global Economy happens to be in need of dire financial support October 2nd, 1998 It has been quite some time since we had our last Shareholder meeting a few months ago. Now we have seen global tensions fall and bring down stock prices significantly. Berkshire now sees that this is a good opportunity to purchase stakes in these economies that have large upside potential.  We are willing to look forward to hearing from our potential partners with our large amounts of cash on hand. 

  Surprisingly, inaction does not bode well for the Republic of Indonesia. Assassinations rise as emotions clash with reason  It has been more than 9 months since the Indonesian financial crisis has broken out, and without  any action taken by the IMF, the illiquidity that Indonesia has been struggling with has not just remained unresolved, but has actually worsened. Without any capital to repay their loans, Indonesia companies are not just retrenching employees, but are also filing for bankruptcy en masse.  The IDX Composite has fallen over 53.5% since the start of the crisis, and unemployment has risen to an all-time high at 7.2%. Exports are worsening as global demand has declined drastically following the full-blown global financial crisis, and the trade deficit is worsening Indonesia's already crippling BOP numbers. Protests across Jakarta have only worsened, and rumours of assassinations of authorities in the Ministry of Finance and large banks have only increa...