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IMF says Asia recovery on track

DILI: Asia remains on the road to economic recovery even if the crisis that has so damaged much of the region is not quite finished yet, a top IMF official said. "It is (on track) and if somebody were to ask whether the crisis is over or not, it's not yet over but look at (South) Korea for instance.

Their speed of economic growth is about 10 percent at the moment and is remarkable," IMF deputy managing director Shigemitsu Sugisaki told Reuters in an interview. He was speaking on Tuesday night in the East Timor capital Dili,

where he was on a two-day official visit. Sugisaki said both South Korea and Thailand were working on further financial restructuring and corporate debt issues. Indonesia, worst hit of all in the crisis, continued to lag the others because of social and political problems but was also on the mend. "Look at the inflation rate (in Indonesia).

It's very stable and now the economic growth is positive. So with additional efforts on the part of the government, particularly on the financial and corporate restructuring, we can reasonably expect their recovery to continue." Commenting on Tuesday's announcement by the Indonesian government that it would raise fuel prices,

Sugisaki said it had been a difficult decision. "World oil prices are increasing...so the cost (of fuel subsidies) is getting higher. If the government doesn't take any action, that will be a cost to the government budget. In the end it has to be borne by the tax money, in other words, the people at large," he said.

"The question is whether that burden should be borne by the general public or should be borne by those who consume energy. So with the right social safety net, it's better to increase the oil prices and then that burden is paid by the consumers of oil.

"Asked to comment on who might replace outgoing managing director Michel Camdessus, Sugisaki said he did not know who his new boss would be. "I hope it (the decision) will come as soon as possible because we need a new managing director. that will be in the interest of the world economy," he said. -Reuters