The Indonesian government welcomed a decision by the Paris Club of donor nations that agrees a moratorium on debt repayment for countries hit by the Dec. 26 tsunami but said it would avoid taking on new soft-loans.

"I frankly say that we are very grateful. But taking on new debts is a difficult decision at this time," Foreign Minister Hassan Wirajuda was quoted Thursday by Bisnis Indonesia newspaper as saying.

Prior to Wednesday's meeting in Paris, the French government offered 300 million euros in soft loans carrying 1 percent of interest for a 20-year term for Indonesia.

But Hassan, who met President Jacquest Chirac, said Indonesia could not accept new debts.

(Xinhua News Agency January 13, 2005)