Exim Bank to finance RI infrastructure projects<\/p>\n
JAKARTA (JP): The Export-Import Bank of the United States will
\nfinance various infrastructural projects to be carried out by the
\nprivate sector in Indonesia, says the bank's president.<\/p>\n
\"Not only do we want to continue, (but also) we want to
\naggressively increase the amount of money that we lend to
\nIndonesia, both to the government and the private sector,\"
\nKenneth Brody told reporters after meeting with President
\nSoeharto at the Bina Graha presidential office here yesterday.<\/p>\n
He said the bank saw \"special opportunities\" in Indonesia to
\nfinance infrastructural projects in the power, water,
\ntransportation and telecommunications sectors.<\/p>\n
The banker, however, declined to name the Indonesian companies
\nwhich will receive the funding. \"We are still negotiating,\" he
\nsaid.<\/p>\n
He said the bank will move into those projects mainly through
\nspecial arrangements called \"limited recourse projects.\"<\/p>\n
Brody said that this type of financing is based on repayments
\nthrough the project's cashflow, which would enable the bank to
\nplay a more significant role in infrastructural development
\nwithout adding to Indonesia's debt.<\/p>\n
Coordinating Minister for Economy and Finance Saleh Afiff
\nwarned last month that the country's offshore debt had reached
\nUS$90 billion, nearing what the minister termed the
\n\"psychological barrier\" of $100 billion.<\/p>\n
Banking<\/p>\n
Brody also said yesterday that the Indonesian banking sector,
\nwhich has been rocked by bad-debt scandals and poor credit
\nratings, should be viewed from a long-term perspective.<\/p>\n
Standard & Poor's, a U.S. credit rating company, recently said
\nthat the Indonesian banking system in \"a high risk environment,\"
\none \"undergoing a period of financial stress.\"<\/p>\n
\"The problem in Indonesia's banks should not be exaggerated.
\nIt happens everywhere,\" he said.<\/p>\n
The U.S. Exim Bank is Washington's official export credit
\nrating agency and helps finance and promote the sale of American
\ngoods and services around the world.<\/p>\n
The bank has 40 years of experience in dealing with the
\ngovernment of Indonesia. Its current portfolio in this country
\ntotals US$1.7 billion.<\/p>\n
Exim Bank has financed several projects in Indonesia,
\nincluding the sale to Garuda Indonesia by the Boeing Corporation
\nof seven B-737s and two B-747s worth over $600 million and the
\nsale of $55.9 million of coal boiler equipment by the Babcock &
\nWilcox Company of the U.S. to the State Electricity Company
\n(PLN). (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exim-bank-to-finance-ri-infrastructure-projects-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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