BDN, Eksim pulled out of GKG project in time<\/p>\n
JAKARTA (JP): Bank Dagang Negara (BDN) and Bank Ekspor Impor
\nIndonesia (Eksim) pulled out of a syndicated loan for businessman
\nEddy Tansil as soon they discovered that something was wrong with
\nthe credit arrangement.<\/p>\n
Executives of the two state banks said in a court testimony
\nyesterday that they withdrew from the syndication early this
\nyear, leaving Bank Pembangunan Indonesia (Bapindo) as the lead
\nmanager of the syndication to carry the loan by itself.<\/p>\n
Rushandoko of BDN and Darwanto of Bank Eksim were testifying
\nyesterday at the trial of former Bapindo director Towil Heryoto,
\nwho stands accused, along with three other former directors, of
\nallowing their bank to lose nearly Rp 1 billion (($476 million)
\nin its dealings with Tansil, the owner of the Golden Key Group.<\/p>\n
Both Rushandoko and Darwanto said that Bapindo's decision to
\nconvert the terms of the loans for Tansil from issuance letter of
\ncredit to red clause was in violation of the syndication
\nagreement.<\/p>\n
The two banks withdrew from the syndication early this year
\nbefore the credit turned sour.<\/p>\n
"We withdrew withdrawn our participation in financing the
\npetrochemical project of PT Graha Swakarsa Prima (GSP) and PT
\nPusaka Warna, the Polypropylene Unit (PP), last March,"
\nRushandoko told the court.<\/p>\n
Bapindo never informed his bank about the conversion in the
\nterms of the loan, a practice which most bankers said carries a
\nhigh risk for the lender.<\/p>\n
"The syndication agreement states that a bank member can pull
\nout of the syndication if it is not satisfied with Bapindo's
\nperformance," he said.<\/p>\n
Rushandoko acknowledged that his bank had agreed to join in
\nthe syndication because the loan applications were submitted with
\na letter of reference from Sudomo, then the coordinating minister
\nof political affairs and security.<\/p>\n
BDN participated in financing a third of the total $125.5
\nmillion fund required for the GSP project and $109.9 billion for
\nthe PE project. Bapindo and Bank BNI, also a state bank, each
\ntook a third of the share of the two syndications.<\/p>\n
Bank Eksim was committed to financing 25 percent of the $241.2
\nmillion needed to finance the petrochemical project of PT Pusaka
\nWarna, the Polyethylene Unit (PE). Bapindo took a 50 percent
\nshare, while Bank BNI took the other 25 percent.<\/p>\n
Towil's trial at the South Jakarta district court was
\nadjourned until today.<\/p>\n
Tansil has already been convicted of the Rp 1.3 million ($620
\nmillion) loan fraud at Bapindo. He was sentenced to 17 years
\nimprisonment and ordered to pay Rp 500 billion ($238 million) in
\nrestitution. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bdn-eksim-pulled-out-of-gkg-project-in-time-1447893297",
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"sponsor": "Okusi Associates",
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