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Largest ever World Bank loan to Vietnam signals country's swift path to middle-income status

James I Davison's picture

Last month, Vietnam and the World Bank signed the credit agreement for a loan that is historic for the rapidly developing country.

Indonesia's $100 billion budget: Is debt an issue?

Wolfgang Fengler's picture

I have received many encouraging responses to my first blog. Thank you. This time, let's look at Indonesia's budget. Last year, Indonesia's budget reached the magical threshold of US$100 billion.

Regional Finance Roundup – A look at Thailand after the ASEAN summit cancellation; updates on China, Singapore and Mongolia

James Seward's picture

In terms of big newsworthy events in Asia, one of the biggest has to be the anti-government protests in Thailand. A relatively small number of protesters dramatically caused the cancellation of an ASEAN+3 meeting held in Pattaya this past weekend where 10 regional heads of state were evacuated. The World Bank President, as well as the head of the IMF and UN, were turned around at the airport in Bangkok. Although the protests around the country have effectively ended after martial law was declared and two protesters died, the damage of this may be longer-lasting. Although a discussion of the politics would be interesting, let's concentrate on the finance-related issues.

Indonesia: Women in Nias have entrepreneurial spirit

Nia Sarinastiti's picture

Women entrepreneurs in Nias, Indonesia, describe how they manage community loans and expand business ventures.
In the many trips I've taken with the World Bank’s Indonesia Country Director, Joachim von Amsberg, I've always admired how indigenous locals interact with expatriates. I think from the curiosity of whether an expatriate really would like to engage with them and understand their needs, you can actually see the sparkle in their eyes to pose many questions.

In our visit to Hiliweto village of Gido district of Nias, the mission team visited the home of one of the women's group leaders to chat with informal women entrepreneurs on how they manage their community loans and expand their business ventures. At first, the group was reluctant to even answer a question, but Joachim broke the ice by agreeing to have the women ask about him – for example, where he comes from, married or not, children, etc. As the discussion went into a more relaxed mode, we asked what specific program benefits them the most. They all hailed microfinancing. Getting small loans is a common problem in Indonesia because credit is difficult to obtain from banks without having any collateral as a guarantee.

Is there a wave of bad debt on the horizon in Asia?

James Seward's picture

You may want to grab your surfboard to be prepared even though this wave may not yet be visible now.  There is little (public) focus on this question in Asia at the moment and I suspect that the reason is simple – over the past ten years we have witnessed a relatively long period of stability and rapid economic growth across Asia.  Such a situation can too easily breed complacency and high levels of risk-taking by banks, as well as a mo