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Suharto in talks on fresh IMF deal

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International Monetary Fund deputy managing director Stanley Fischer will meet with President Suharto this morning to work out final details of a fresh IMF bailout package.

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Mr Fischer, who arrived in Jakarta last night, said amendments had been made to the US$43 billion package and talks to restart the programme were nearing a conclusion.

'When the letter of intent is published, it will be seen that detailed measures have been taken,' Mr Fischer said, referring to a document expected to be issued by Indonesian authorities when the talks finish.

He would not elaborate on what changes had been made or when a new deal would be struck.

Sources say tomorrow has been provisionally ear-marked.

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'The negotiations have gone well,' Mr Fischer said. 'We are nearing the conclusion.' Mr Fischer dismissed speculation that the new package would be a watered down, more flexible version of the second deal signed by Mr Suharto on January 23 in light of the country's escalating economic difficulties.

One difference, he said, would be the inclusion of clearer details on implementation and better monitoring checks.

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