BI to transfer Texmaco loans to IBRA<\/p>\n
JAKARTA (JP): Bank Indonesia Governor Sjahril Sabirin said on
\nFriday that Texmaco Group's bad loans owed to the state-owned
\nBank Negara Indonesia (BNI) would be \"immediately\" transferred to
\nthe Indonesian Bank Restructuring Agency (IBRA).<\/p>\n
Sjahril said that the transfer of the category five bad loans
\nwas part of the requirements of the government bank
\nrecapitalization program.<\/p>\n
\"They will be transferred immediately,\" he told reporters
\nfollowing Friday prayers.<\/p>\n
The newly independent central bank is supervising the
\ncountry's banks until the government forms a special supervisory
\nbody for financial institutions within the next year.<\/p>\n
Sjahril declined to mention the exact date of the transfer
\nand the size of Texmaco's loans.<\/p>\n
\"You can come again to me next week to check,\" he said.<\/p>\n
The transfer of the Texmaco loans from BNI to IBRA became a
\ncontroversy last year not only because the group was accused of
\nusing its connections with former president Soeharto to get a
\nhuge Rp 9.6 trillion (US$1.29 billion) loan from BNI, but also
\nbecause there was speculation that the group was trying to
\nprevent the loan transfer.<\/p>\n
Bad loans transferred to IBRA would have to be either
\nrestructured under the agency's tough terms or risk litigation
\nmeasures.<\/p>\n
Texmaco is the country's largest integrated textile group. It
\nalso owns large stakes in the truck, tractor and engineering
\ngoods industries.<\/p>\n
Then BNI president Widigdo Sukarman said in November 1999 that
\nthe Texmaco loans were category four or substandard loans. It is
\nnot clear how many of the loans have since been classified as
\ncategory five bad loans.<\/p>\n
Banks joining the government recapitalization program must
\ntransfer all of their category five loans as well as loans with
\nprovisions of more than 50 percent to IBRA.<\/p>\n
BNI is one of the state banks to be recapitalized this year
\nthat has boosted its capital adequacy ratio (CAR) to beyond the 4
\npercent minimum level.<\/p>\n
The bank needs around Rp 52.8 trillion in recapitalization
\nfunds. It launched a rights issue last year to facilitate the
\nrecapitalization program, but it only managed to raise around Rp
\n238 billion from public shareholders, leaving the government to
\npurchase the remainder.<\/p>\n
In a January letter of intent to the International Monetary
\nFund, the government said it planned to recapitalize BNI by Feb.
\n29.<\/p>\n
Asked about the delay, Sjahril said, \"It's only because of a
\ntechnical problem.\" He declined to elaborate.<\/p>\n
Meanwhile, Sjahril also said that Bank Indonesia would
\ncontinue its efforts to divest its 100 percent ownership of the
\nAmsterdam-based Indover Bank.<\/p>\n
Bank Indonesia has to divest its ownership in the bank because
\nit has become an independent central bank focusing on monetary
\npolicy.<\/p>\n
\"We expect the divestment program to be completed this year,\"
\nhe said.<\/p>\n
Sjahril said that Bank Indonesia had nearly completed a deal
\nwith a buyer in 1998, but it was dropped following the financial
\ncrisis in the region.<\/p>\n
Indover has also operations in Hongkong.(rei)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bi-to-transfer-texmaco-loans-to-ibra-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }