"I don't think we have any new view. Just like anybody else, we are watching the situation with concern. I don't think we have been able to develop any new view," the source said in a telephone interview.

"Of course, we constantly review the situation and we try to update and adjust the programme in light of the evolving new situation. That certainly will continue, but exactly what we will do, I don't think anybody can say at this time."

Indonesia on Tuesday was teetering on the brink of a confrontation between civilian protesters and the military as it awaited key announcements by parliament and president Suharto.

A broadcast by the ageing leader originally set for 0200 GMT on Tuesday was delayed and it was not immediately clear when it would begin. The World Bank, which hadbeen due on Tuesday to debate $1.2 billion in new loans to Indonesia, on Monday postponed those discussions until the situation became clearer in the strife-torn country, where 500 people died in four days of rioting last week. The World Bank money forms part of a $4.5-billion promised contribution to a $40-billion rescue package for Indonesia.

But the bank, along with the IMF and western firms and institutions, pulled most of its foreign staff out of the Indonesian capital Jakarta astension mounted, prompting doubt about whether any loans could go ahead. Dennis de Tray, the World Bank's country director for Indonesia, said earlier in Jakarta that the economic assumptions underpinning the rescue package would have to be reassessed to take accoun tof the unrest.

The Asia Development Bank, meanwhile, said on Monday in Manila that it was unlikely to discuss at least for this week a proposed $1.5-billion loan to Indonesia. The IMF source acknowledged that the delay in funding jeopardised the IMF-led rescueplan. "Of course it does. The original scenario is that the authorities go ahead with the reforms and that the international community -- including the World Bank, ADB etc -- extend support," the source said. "But the developments in the last few days, I think, forced all of us to at least halt, and watch the situation. It's a very unfortunate situation," the source added.

The IMF declined earlier on Tuesday to say when it expected to send its experts back to Indonesia or whether plans to approve additional installments of its own $10-billion loan would be delayed as well.

Commercial bankers, meanwhile, on Monday delayed a May 26 meeting aimed at working out how to reschedule an $80 billion mountain of private-sector debt, with one US banker saying the talks would probably be rescheduled in early June. The debt talks delay "is a deviation from the ideal situation -- but what can we do?" the IMF source said.

Asked about charges that the IMF contributed to the turmoil now wracking the world's fourth mostpopulous country with too-stringent reform demands, the IMF source said: "We have always been saying we are doing what we think and believe is the best for the country, and I hope everybody including those who are criticising us would understand."

The source said he could not predict the fate of the IMF-led rescue plan and the agreed reform package in the event that Suharto was forced to step down. Pressed by thousands of students and other demonstrators, members of parliament were to decide on Tuesday whether to back their leadership in demanding Suharto resign and peacefully end 32 years of power.