BEI to boost export credit by 85 percent<\/p>\n
JAKARTA (JP): State Bank Ekspor Indonesia (BEI) plans to
\nincrease its lending in 2001 by 85 percent to Rp 11.95 trillion
\n(US$1.2 billion), up from Rp 6.4 trillion in 2000, bank president
\nBambang Hendrajatin said here on Tuesday.<\/p>\n
Bambang said the bank would extend fresh loans of about Rp
\n5.55 trillion this year, most going to strengthen the working
\ncapital of export-oriented companies.<\/p>\n
He said the loans would be directed to several business
\nsectors, including those related to the production of timber,
\nplywood, shoes, crude palm oil, textiles and textile products,
\nrubber, pulp and paper, frozen fish, electronics and furniture.<\/p>\n
The bank's vice president, Julhandiarso, said that between
\n1999 and 2000 BEI had no difficulties collecting loan payments
\nfrom appointed banks, which indicated that these banks had no
\nproblems in being paid by the exporters who were extended the
\nloans.<\/p>\n
He added that the bank's profit was expected to increase to Rp
\n223 billion ($23.47 million) from Rp 173 billion in 2000 due to
\nthe expansion of loans.<\/p>\n
BEI was established in early 1999 to help export-oriented
\ncompanies by channeling loans to these businesses. Unlike a
\nconventional bank, the institution is not allowed to raise funds
\nfrom the public to finance its activities.<\/p>\n
The bank instead obtains funds from bilateral and multilateral
\nforeign financial institutions.<\/p>\n
BEI extends its loans through appointed banks because the law
\ndoes not allow it to extend the loans directly to exporters.<\/p>\n
To date, the bank has obtained over $1 billion in financing
\nfrom Japan Bank for International Cooperation, of which some $250
\nmillion must be repaid by November. (05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bei-to-boost-export-credit-by-85-percent-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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