BTN will lower rates on home loans<\/p>\n
JAKARTA (JP): Bank Tabungan Negara (BTN) will lower the
\ninterest rate on its loans for low-cost houses from its current
\nlevel of 16 percent per annum to help low-income people own
\nhomes, the state-owned bank's president said yesterday.<\/p>\n
Widigdo Sukarman told reporters after a hearing with
\nCommission V of the House of Representatives (DPR) that the
\nplanned reduction of the interest rate by more than one percent
\nis also aimed at encouraging developers to build more low-cost
\nhouses.<\/p>\n
He said so far the pace of the development of low-cost houses
\nis slower than the growth demand.<\/p>\n
Widigdo said Bank Tabungan Negara currently holds a sufficient
\namount of funds that can be used to support the reduction of the
\nlending rate. The exact new rate will be announced at a later
\ndate.<\/p>\n
Besides public savings, the bank also manages funds from the
\ngovernment and two-step loans from other countries.<\/p>\n
Widigdo acknowledged that developers generally face
\ndifficulties in providing low-cost houses due to high interest
\nrates and increasing prices of land.<\/p>\n
When asked about the bank's problem loans, the executive
\nexplained that the total amount of its bad and doubtful loans as
\nof July reached Rp 48.78 billion (US$22.55 million) or 1.26
\npercent of its total credits of Rp 3.8 trillion, which had been
\nextended to 743,303 borrowers.<\/p>\n
He said that 74 percent of the bank's credits are extended to
\nbuyers of low-cost houses.(05)<\/p>",
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