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The Suharto Mess Means Higher Loan Rates Elsewhere (Int'l Edition)


International -- Readers Report

THE SUHARTO MESS MEANS HIGHER LOAN RATES ELSEWHERE (int'l edition)

Indonesia's crisis has world implications not noted in "Suharto gives a little--and gets a lot" (Finance, Apr. 6). The Suharto syndrome will affect other countries that have "democratic" dictatorships, such as Africa and Asia, and Latin American economies such as Colombia, Venezuela, and Ecuador.

If Suharto wins, these countries will pay the price in higher loan rates. The measurement of risk in lending to these "Suhartian" countries will undoubtedly be higher than those fixed to countries in which the state intervention in economic activities is highly deregulated.

Bernardo Congote

Bogota


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