BTN pledges to help small house buyers<\/p>\n
JAKARTA (JP): State-owned Bank Tabungan Negara (BTN) will
\ncontinue to direct most of its credits to small-house purchases
\ndespite its' growing services to non-housing sectors.<\/p>\n
\"We are committed to our mission, helping the financially weak,
\nparticularly those wanting to buy low-cost houses,\" BTN
\npresident Widigdo Sukarman told reporters here yesterday.<\/p>\n
Next year, BTN will allocate around Rp 1.09 trillion (US$474.5
\nmillion), around 35 percent of its total lending portfolio for
\nthe year, to finance modest house construction and purchases.<\/p>\n
He said that the loans could be used to purchase 143,690 units
\nof housing measuring between 18 and 21 square meters.<\/p>\n
BTN's total credits for the purchases of modest houses reached
\naround Rp 5.2 trillion since October when the bank launched the
\nfacility in 1976. The number of houses financed with the bank's
\ncredits reached over 1.02 million, mostly built under the
\ngovernment's public housing program.<\/p>\n
BTN receives a special credit from Bank Indonesia, the central
\nbank, to finance its modest-house loans, in addition to the
\ngovernment's equity participation in the bank.<\/p>\n
He said that the interest rates on the bank's lending facility
\nwould be kept at 8.5 percent per annum for the purchase of houses
\nmeasuring 18 square meters and at 11 percent for 21-square-meter
\nhouses.<\/p>\n
The interest rates for the modest-home credits are much lower
\nthan the 20 percent imposed on the bank's credits for the
\npurchase of houses of above 21 square meters and those for non-
\nhousing lending.<\/p>\n
Widigdo said that the bank's lending portfolio in non-housing
\nsectors, which this year is projected to account for around 20
\npercent of its total lending, will be further expanded.<\/p>\n
\"But we have to be very careful because non-housing sectors
\nare more risky,\" he said.<\/p>\n
The bank's total assets reached Rp 8.87 trillion as of
\nOctober, indicating a 33.24 percent hike from its position at the
\nsame month of last year. Its net profit rose by 40 percent to Rp
\n155.18 billion during the first 10 months of this year from Rp
\n114.11 billion in the same period of last year. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/btn-pledges-to-help-small-house-buyers-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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